I am a resident of a small metro called. Bengaluru, where almost every shop run by a person who is under the age of 50 accepts UPI.
If I don't have exact change, my local bodega owner tells me to just UPI Maadi. (Ofcourse, it is anecdotal, and on occasion I have had to rustle up cash to pay the rare shopkeeper who doesn't have UPI yet).
At any rate, let me relate my experience living a reasonably ordinary day: 6 AM buy milk from nandini parlour near the park, payment using UPI 7AM take bus to college/work: payment via UPI (as i have a digital bus pass) 8AM morning coffee at cafe: payment UPI 12 PM lunch, also UPI 6 PM groceries for the night/breakfast, payment UPI, at a small roadside vendor.
I do concede that my life is rather privileged, and the areas i go around in are not very high rent.
This year, when i went on a trip to coastal Karnataka, i used all of ~700 INR in the form of cash, ~5% of my trip budget for 4. Of that 700, only 200 went towards paying vendors. The rest went towards donations in temples.
The areas i travelled to however, were not the very touristy places, but rather more ordinary places, with reasonable hotels.