I think the hidden value of UPI is that it makes doing business easier which is of huge value. People sitting on money has never helped any economy…especially at the level that UPI operates - ie enabling petty spending greases the wheels of the economy and lifts people out of poverty.
For example, say I want to buy coconut water on a hot day. Earlier, I’d go without if I didn’t have change. Now I use UPI. I benefit from fresh coconut water. The seller benefits from my money going to his bank account.
Even GWB told people to go shopping after 9/11 so that the wheels of the economy would keep churning.
The lack of "petty spending" is not the reason India has a poverty problem.
Therefore, anything which loosens the purse strings should lead to more business activity.
More business activity will lead to better resource allocation and hiring, more auxiliary services cropping up to support novel needs.
All this will lead to fewer poor people.
Now, reverse the arrow. If it were to become harder and harder to spend money, more and more people would fall into poverty.
It’s the stuff that was above the bottom of Maslow’s needs pyramid that UPI has enabled.
