CASHLESS ECONOMY AND DIGITALISATION: SHIFTING PATTERNS IN INDIAN PAYMENT INDUSTRY

Abstract

The purpose of this chapter is to describe the methodology used to achieve the research objectives of this study. This includes the type of the research, target population, the sampling techniques, the data collection and data analysis procedures. The current study is based on primary data and the necessary data were collected from the websites, a convenient sampling was used in the study. A sample of 65 respondents was selected for the study and the study was conducted in the city of Delhi alone. Secondary sources were used to gather information on the “Cashless Economy and Digitalization”. Magazines, articles, research reports and government documents have been examined to obtain information on previous actions that stakeholders and legislators have already implemented. We have also researched websites of companies that produce research reports and online documents to carry out this research. Self-administered questionnaires are distributed to 65 respondents in order to find out the adoption of digital payment system and perception and attitude towards Government initiatives during 2014-19 and the factors that positively contributed for the formation, change and maintenance of these attitudes. Paper money and cheques have been the essential modes of payment and trade for the vast majority of the twentieth century in India. New Disruptive Technologies with new norms, service provision and consumption all having a digitalization as a basic feature have emerged. Many central banks and governments, in both developed and emerging economies, continue attempting to replace paper currency with plastic and endeavouring the usage of digital payment instruments. In order to encourage adoption of cards, the Indian government established frameworks for safety and security making the adoption of these new system easier. The path towards digitization started much earlier than Demonetization with internet penetration, telecom revolution leading to widespread availability of smartphones, 3G availability, and rise of e- commerce start-ups & e-wallet companies. All these led to people getting familiarized with digital platforms and online transactions. It’s just that post demonetization the trend towards digitization and cashless transactions has significantly accelerated. Thus, the current study is an endeavour to demonstrate the emergence of cashless economy and expansion of digitization, analyse India’s cashless economy, policy development and regulations in relation to cashless economy and digitization in the time period i.e. 2014-15 to 2018-19