January 5, 2026 Summary: A study by the Reserve Bank of India (RBI) highlights a “Digital Revolution” in small business operations. As of January 2026, 72% of all MSME transactions are digital, driven by UPI and the Open Network for Digital Commerce (ONDC). This digital footprint is allowing banks to use “Cash-flow based lending” instead of requiring traditional collateral, solving a decades-old credit gap.
Digital Dominance: 72% of MSME Transactions in India are Now Cashless
