In a surprising shift from the usual digital narrative, states like Chhattisgarh, Madhya Pradesh, Bihar, and Uttar Pradesh are outperforming traditionally richer and more tech-savvy regions such as Kerala, Tamil Nadu, and Karnataka in digital payment literacy. A recent analysis based on government survey data reveals that India’s digital growth story is not led by its metropolitan or high-income states, but by regions often perceived as lagging in technology and infrastructure.
According to data from the Ministry of Statistics, Chhattisgarh recorded the highest share of people with UPI knowledge at 95.2 percent in the January–March 2025 quarter. This is far above the national average of 81.4 percent. Madhya Pradesh and Bihar also performed well, indicating that digital penetration in the Hindi-speaking belt is gaining pace at an unexpected rate. In Bihar, 84.8 percent of people said they knew how to use UPI, while 84.1 percent reported the same in Uttar Pradesh.
Southern states fall behind in awareness
In contrast, some of the country’s more urbanized and wealthier states lagged behind. Maharashtra saw only 69.7 percent of people familiar with UPI, while Kerala stood at 73.3 percent and Telangana at 73.5 percent. Even Karnataka, home to Bengaluru — India’s IT capital — reported less than 75 percent digital payment awareness. These figures challenge long-held assumptions that better infrastructure and education automatically lead to stronger digital engagement.
Women leading digital inclusion
Another standout finding from the survey is the role of women in driving digital financial literacy. Nationally, 84 percent of women reported being able to carry out UPI transactions, compared to 79.9 percent of men. Bihar again stood out, with 89.3 percent of women saying they could make online payments, versus 82.3 percent of men. This signals a significant shift in gender roles within digital finance, particularly in regions often stereotyped as patriarchal and underdeveloped.
The survey also uncovered an interesting detail about internet access. Bihar leads in terms of household internet availability at 87.7 percent, higher than Karnataka (86.3%), Maharashtra (84.7%), and Tamil Nadu (71.8%). However, this rapid rise in digital adoption comes with a caveat. Awareness around cyber fraud remains low in these high-performing states. In Bihar, only 13.4 percent knew how to report cybercrimes, compared to 25.7 percent in Karnataka and 23.4 percent in Maharashtra.
