If you’ve been shopping around Bengaluru lately, you might have noticed a growing number of signs that say “No UPI, Cash Only.” For a city known as India’s tech capital, this sudden shift away from digital payments might seem surprising. But for many small shopkeepers, it’s a practical decision driven by recent challenges.

Several local vendors say they are dealing with delayed settlements, technical glitches, and sometimes extra transaction charges when accepting UPI payments. “Sometimes the money doesn’t show up in the account immediately, and we don’t know whether it’s a failed payment or just delayed,” says Ramesh, who runs a general store near Indiranagar. “With cash, there’s no confusion.”

Another reason is the increased scrutiny from tax authorities. Many small businesses prefer cash to avoid complications related to GST or audits, especially if their operations are mostly informal. Some vendors also expressed concerns about over-reliance on digital systems, particularly during internet outages or server errors.

While digital payments are still widely used in malls, cafes, and larger stores, many small eateries, roadside stalls, and kirana shops in areas like Rajajinagar and Jayanagar are now requesting customers to pay in cash.

For regular shoppers, this can be a bit inconvenient. “I’ve gotten used to carrying no cash at all, so it’s frustrating when I need to hunt for an ATM,” says Priya, a college student.

As India continues to promote Digital India and cashless payments, this pushback from Bengaluru’s shopkeepers shows there’s still some ground to cover when it comes to trust, ease of use, and backend systems.