Demonetization and Its Impact On Adoption of Digital Payment: Opportunities, Issues and Challenges

Volume 6, Issue 6 (June, 2017) UGC APPROVED Online ISSN-2277-1166
Published by: Abhinav Publication

Abhinav National Monthly Refereed Journal of Research in
Commerce & Management
DEMONETIZATION AND ITS IMPACT ON ADOPTION OF
DIGITAL PAYMENT: OPPORTUNITIES, ISSUES AND
CHALLENGES
Piyush Kumar1
Research Scholar (Ph. D.), Department Of Management
Uttaranchal University, Dehradun, Uttarakhand, India
Email: searchlucknow@gmail.com
Dr. Dhani Shanker Chaubey2
Dean Research & Studies, Department Of Management,
Uttaranchal University, Dehradun, Uttarakhand, India
Email: chaubeyds@gmail.com
ABSTRACT
The digital payment changed the buying behavior of Indian society. It prevents black money market. It
helps the government to maintain a record of all transaction. Digital Payment Habit has changed after
demonetization. People have no other option for transaction so Indian society move slowly from cash
to digital transaction system. On the earlier, when digital payment introduce people hesitate to change
their transaction habits but after demonetization, they force to do their transaction with digital
payment. This research is an encomium on the charisma of digital payment analysis after
demonetization and its, its usability and affordability while they are affecting its preference of country.
The way consumer perceives digital transaction after demonetization, it affects a lot in the society, of
Indian culture.
Keywords: Demonetization, Transaction, Behavior, Affordability, Society
INTRODUCTION
The Digital Nation is flagship programme of the government of India with a vision to rework India
into a digitally authorized society and data economy. Faceless, Paperless, Cashless is one among
professed role of Digital India. Payments square measure created victimization payment instruments.
Cash, let us say, may be a payment instrument. Therefore too square measure checks. However, digital
payments do not seem to be one instrument however rather associate degree umbrella term applied to a
spread of various instruments employed in alternative ways. During this section, we offer some
parameters for making this definition. Since there is nobody commonplace definition of a digital or
e-payment, you must decide on a transparent and implementable definition at the beginning of any
measure exercise. The topic matter is advanced, however there square measure two key dimensions of
categorization that square measure most important: Neither term includes a commonplace definition;
however, each square measure typically accustomed mean identical thingtransfers valuable that
square measure initiated and/or received victimization electronic devices and channels to transmit the
directions. Thus during this manual they are interchangeable. Note that digitizing is usually applied to
processes except payments: Thus, a government might change its method of accounting; however still
build payments by paper (check or cash). For additional on e-payments, Narrow choice- Paper vs
non-paper: Instruments that have faith in a paper-basis for authorization, reminiscent of checks,
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Abhinav National Monthly Refereed Journal of Research In
travelers checks, and cash orders, square measure thought to be non-digital and every one different
instruments square measure thought to be digital.
BROAD ALTERNATIVE - CASH VS NON-CASH
Each instrument except money is thought to be non-cash and thus digital, since every typically takes
a digital kind at some stage within the transfer valuable. In reality, there is a spectrum between pure
digital and pure physical in however most instruments except money square measure transacted over
the full dealings cycle. The selection of that definitional choice to apply can depend upon the aim.
Lets say, if you're mensuration to spotlight the necessity to transition off from existing payment
instruments thanks to, let's say, cost, then you'll build a case for that specialize in the broader definition
(non-paper instruments). However, if you wish to spotlight the potential of payment flows to be
digitized, you'll think about checks the maximum amount nearer to digital than money, thus together
with them with non-cash within the slim definition. In associate degree increasing numbers of states,
paper checks square measure truncated into associate degree digital message on deposit, associate
degreed since they need the money dealer to own an account, and are traceable, they're less like take
advantage these attributes and additional like account-based digital choices.
Note, however, that technology is difficult the boundaries of all instrument-based definitionsfor
example, countries like Canada square measure considering the introduction of digital money,
wherever digital monetary system is transferred directly from money dealer to recipient in a very
payment dealings, and wherever paper and golden currency can become obsolete. Thus cash dealings
might be digital. The other definitional dimension to clarify is that of the payment parties, if any, use
electronic interfaces. once each the money dealer and also the recipient use electronic means that to
initiate and receive payments, the image is clearthis are often thought of pure electronic. However,
there different payer-payee situations which can have an effect on wherever the borderline is drawn for
electronic
The nature of the payment instrument: Through that, meanspaper or digitalare the directions
carried. The money dealer-payee interface: whether or not the payer, payee, or each use associate
degree electronic medium in a very payment dealings. As a part of promoting cashless transactions and
changing India into less-cash society, numerous modes of digital payments are accessible.
BANKING CARDS
Banking cards provide customers a lot of security, convenience, and management than the other
payment methodology. The large choice of cards accessible as well as credit, debit and pre-paid
cards offers huge flexibility, as well. These cards give a pair of issue authentication for secure
payments e.g secure PIN and OTP. RuPay, Visa, MasterCard are a number of the instance of card
payment systems. Payment cards provide individuals the facility to buy things in stores, on the net,
through mail-order catalogues and over the phone. They save each customers and merchants time and
cash, and therefore change them for easy group action.
UNSTRUCTURED SUPPLEMENTARY SERVICE KNOWLEDGE (USSD)
The innovative payment service *99# works on Unstructured Supplementary Service knowledge
(USSD) channel. A service permits mobile banking transactions mistreatment basic feature itinerant,
there ought not to have mobile web knowledge facility for mistreatment USSD based mostly mobile
banking. It is unreal to supply monetary deepening and inclusion of under banked society within the
thought banking services. *99# service has been launched to require the banking services to each
mortal across the country. Banking customers will avail this service by dialing *99#, a Common
range across all telecommunication Service suppliers (TSPs) on their itinerant associate degreed
interact through an interactive menu displayed on the mobile screen. Key services offered beneath
*99# service embody, interbank account to account fund transfer, balance enquiry, mini statement
besides host of different services. *99# service is presently offered by fifty one leading banks & all
GSM service suppliers and might be accessed in twelve completely different languages together with
VOL. 6, ISSUE 6 (June, 2017) 2 Online ISSN 2277-1166

Hindi & English as on thirty.11.2016 (Source: NPCI). *99# service may be a distinctive practical
direct to client service that brings along the various system partners cherish Banks & TSPs (Telecom
Service Providers).
AADHAAR ENABLED PAYMENT SYSTEM (AEPS)
AEPS is a bank led model, which allows online interoperable financial transaction at PoS (Point of
Sale / Micro ATM) through the Business Correspondent (BC)/Bank Mitra of any bank using the
Aadhaar authentication.
UNIFIED PAYMENTS INTERFACE (UPI)
Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile
application (of any participating bank), merging several banking features, seamless fund routing &
merchant payments into one hood. It also caters to the Peer to Peer collect request, which can be
scheduled and paid as per requirement and convenience. Each Bank provides its own UPI App for
Android, Windows and iOS mobile platform(s).
MOBILE WALLETS
A mobile wallet is a way to carry cash in digital format. You can link your credit card or debit card
information in mobile device to mobile wallet application or you can transfer money online to mobile
wallet. Instead of using your physical plastic card to make purchases, you can pay with your
smartphone, tablet, or smart watch. An individual's account is required to be linked to the digital wallet
to load money in it. Most banks have their e-wallets and some private companies. e.g. Paytm,
Freecharge, Mobikwik, Oxigen, mRuppee, Airtel Money, Jio Money, SBI Buddy, itz Cash, Citrus Pay,
Vodafone M-Pesa, Axis Bank Lime, ICICI Pockets, SpeedPay etc.
POINT OF SALE POS
A point of sale (POS) is the place where sales was made. On a macro level, PoS may be a mall, a
market or a city. On a micro level, retailers consider a POS to be the area where a customer completes
a transaction, such as a checkout counter. It is also known as a point of purchase.
INTERNET BANKING
Internet banking, also known as online banking, e-banking or virtual banking, is an electronic payment
system that enables customers of a bank or other financial institution to conduct a range of financial
transactions through the financial institution's website.
Real Time Gross Settlement (RTGS)
RTGS is outlined because the continuous (real-time) settlement of funds transfers
{individually/separately/singly/severally/one by one/on AN individual basis} on an order-by-order
basis (without netting). 'Real Time' means that the process of directions at the time they are received
instead of later; 'Gross Settlement' means that the settlement of funds transfer directions happens
{individually/separately/singly/severally/one by one/on AN individual basis} (on an instruction-by-
instruction basis). Considering that the funds settlement takes place within the books of the banking
company of Asian country, the payments are final and irrevocable. The RTGS system is primarily
meant for giant worth transactions. The minimum quantity to be remitted through RTGS is a pair of
100000. Theres no higher ceiling for RTGS transactions. The RTGS service for customer's
transactions is obtainable to banks from nine.00 hours to sixteen.30 hours on weekdays and from
nine.00 hours to 14:00 hours on Saturdays for settlement at the tally finish. However, the timings that
the banks follow might vary looking on the client timings of the bank branches.
ELECTRONIC CLEARING SYSTEM (ECS)
ECS is an alternate technique for effecting payment transactions in respect of the utility-bill-payments
love phone bills, electricity bills, insurance premium , card payments and loan repayments, etc., which

might obviate the requirement for issuance and handling paper instruments and thereby facilitate
improved client service by banks / corporations / firms / government departments, etc., collection /
receiving the payments.
IMMEDIATE PAYMENT SERVICE (IMPS)
IMPS offer an immediate, 24X7, interbank electronic fund transfer service through mobile phones.
IMPS is AN emphatic tool to transfer cash instantly among banks across Asian country through
mobile, net and ATM that isn't solely safe however conjointly economical each in money and non-
financial views.
OBJECTIVES OF IMPS
To alter bank customers to use mobile instruments as a channel for accessing their banks accounts and
remit funds. Making payment less complicated simply with the mobile range of the beneficiary.
1. To serve the goal of banking company of Asian country (RBI) in electrification of retail
payments.
2. To facilitate mobile payment systems already introduced in {India/Republic of Asian
country/Bharat/Asian country/ Asian nation} with the banking company of India Mobile
Payment pointers 2008 to be inter-operable across banks and mobile operators in an
exceedingly safe and secured manner
3. To build the muse for a full vary of mobile primarily based Banking services.
MOBILE BANKING
Mobile banking is a service provided by a bank or other financial institution that allows its customers
to conduct different types of financial transactions remotely using a mobile device such as a mobile
phone or tablet. It uses software, usually called an app, provided by the banks or financial institution
for the purpose. Each Bank provides its own mobile banking App for Android, Windows and iOS
mobile platform(s).
MICRO ATM
Micro ATM meant to be a tool that's employed by 1,000,000 Business Correspondents (BC) to deliver
basic banking services. The platform can alter Business Correspondents (who might be an area kirana
search owner and can act as micro ATM) to conduct instant transactions. The small platform can
alter perform through low price devices (micro ATMs) which will be connected to banks across the
country. this may alter someone to instantly deposit or withdraw funds no matter the bank related to a
selected B.C.. This device are going to be supported a itinerant affiliation and would be created on the
market at each B.C.. Customers would simply need to get their identity etch and withdraw or place
cash into their bank accounts. This cash can return from the money drawer of the B.C.. Basically, BCs
can act as bank for clients/ the purchasers/the shoppers} and every one they have to try and do is verify
the genuineness of customer victimization customers UID. The fundamental group action sorts to be
supported by small ATM, area unit Deposit, Withdrawal, Fund transfer and Balance enquiry.
OBJECTIVE OF THIS PAPER
1. To know the importance of digital payment after Demonetization as perceived by the people of
India.
2. To assess the people trust and confidence in digital payment system after Demonetization.
3. To assess the uses pattern and nature of transaction done by the people after Demonetization.
4. To identify the factors of digital payment after Demonetization.
HYPOTHESIS
1. H0: Various factors of motivation in favor of Digital Payment do not differ significantly
across the customer demographics.
2. H1: the Present need of Digital Payment as its uses does not differ significantly across the
customer of different demographics.
3. H2: The customer confidence and their level of satisfaction do not differ significantly across
different demographics.
REVIEW OF LITERATURE
Auwal Kabir, Siti Zabedah Saidin, Aidi Ahmi in their article Adoption of e-Payment Systems: A
Review of Literature, E-payment system is increasingly becoming a daring means of payments in
todays business world. This is due to its efficiency, convenience and timeliness. It is a payment
system that is continuously being embraced and adopted in the financial system of both developed and
developing countries with a view to simplify and ease payments in business transactions. As a result,
many studies were conducted around the globe by scholars on e-payment adoption. It is based on this
that this research paper looks at the available past literature on e-payment adoption across the world,
with a view to highlight the scope, methodology and Information System (IS) models used by previous
researchers so as to identify research gaps and recommend such for future studies. The study employed
an extensive literature search on e-payment adoption with the aid of Google Scholar for those recent
studies between the years 2010-2015. To facilitate the understanding of the issue under study, previous
studies were analyzed based on scope-geographical location of the study, theories/models adopted and
methodology used. Finally, the paper has identified the patterns of previous researches with regards to
these three items and further highlights and recommends key areas in which future research should
delve on.
Joilson Dias in their article Digital Money: Review of Literature and Simulation of Welfare
Improvement of This Technological Advance The objective of this paper is to discuss the overall role
of digital money and its impact on welfare and monetary policy. The role of digital money is discussed
under a review of literature and through a simple theoretical model, that captures technological
advances. In this model the representative consumer, decide over two key elements: consumption and
leisure. Here, the leisure are affected by transaction costs and the amount of money available. To
simulate the models result, I use data for Brazil. As general result, I predict that digital means of
payment will improve welfare and increase the overall demand for money
Prof. Eduardo Henrique Diniz, Prof. Joao Porto de Albuquerque Prof. Adrian Kemmer Cernev in their
article, Mobile Money and Payment: a literature review based on academic and practitioner-oriented
publications (2001-2011) The use of mobile technology has become widespread with astonishing
speed all over the world, particularly among the poor. The more mobile phones go to the hands of
people who formerly lacked access to financial services, the more the notions of mobile money,
mobile payment and mobile banking become pervasive as a means of financial inclusion.
Denis Dennehy, David Sammon in their article Trends in mobile payments research: A literature
review, Mobile payments (m-payments) are increasingly being adopted by organizations as a new
way of doing business in the 21st century. During the last few years, the use of m-payments as a new
payment channel has resulted in an increase in the volume of literature dedicated to the topic. For this
reason, this paper presents the findings of a review of literature aimed at identifying the key research
themes and methodologies researched. In order to uncover these trends the authors reviewed the top
twenty cited papers since 1999 and the twenty most recently published papers on m-payments since
August 2014.
Nuthan K, Rashmi P.C, in their article An E-payment System: Literature Review, E-payment
becoming a daily part of our life. This paper gives the brief description of e-payment system. It also
explains the types of e-payment gateway system and e-payment protocols. The security requirements
of the e-payments are discussed. The problem of misusing the data related to the customer in e-
payment is addressed.
Tomi Dahlberg Jie Guo and Jan Ondrus , in their A Critical Review of Mobile Payment Research,
This article aims at assessing the progress of mobile payment research over the last 8 years. In order
to address this issue, a research agenda was formulated to encourage researchers to explore new topics.
Almost a decade later, our review reveals that researchers have continued to focus on the same topics
(especially consumer adoption and technology aspects) with a limited accumulation of new knowledge
and similar findings. In addition to reviewing the literature, we discuss the possible reasons for the
lack of research diversity and propose new recommendations to enhance future mobile payment
research.
Roopali Batra, Neha Kalrain in their article Are Digital Wallets the New Currency? , India is heading
on the path of a major digital revolution. Digitalization of the payment mechanism will be considered
as landmark in the era of cashless future economy. The present research aims to empirically examine
the adoption patterns of digital wallets by of the respondents. An exploration of customer perception,
usage pattern preferences and satisfaction level regarding digital wallets is made based on a study of
52 respondents. It further identifies the barriers and challenges to the adoption of digital wallets. To
attain the afore said purpose a well-structured questionnaire was administered to respondents wherein
they were asked various with regards to adoption of digital wallets. The results indicate that there
exists a huge untapped market for digital wallets both in terms of increasing awareness as well as its
usage. Time saving and ease of usage were found to be the main reasons for using wallets. However,
safety of money transacted remained their major concern. Security issues in terms of fear of cash loss
and lack of usability for international transactions are the prime barriers to its adoption. The study
makes a valuable contribution to research in the area of finance, by exploring digital payment systems
in India, an emerging concept.
Oginni Simon Oyewole, El-Maude, Jibreel Gambo, Mohammed Abba, Michael Ezekiel Onuh in their
article Electronic Payment System and Economic Growth: A Review of Transition to Cashless
Economy in Nigeria, Technological advancement has provided efficient and effective payment
system devoid of cash and carry syndrome. Specifically, electronic payment system provides a
medium through economic exchanges take place without visiting brick and mortal banks or with no
physical presence of the transacting parties. While electronic payment system enjoys prominence in
Nigeria, evidence of its contribution to economic growth has not been empirically established.
Jayadatta S in their A Study On Digital Wallets And Mobile Payments , More importantly digital
wallets hold the promise of that momentous day when a consumer can certainly leave their home
without a wallet. With recent developments ranging from the advent of the smartphones to unbundled
network tokenization, that day is surely closer than ever before. In addition, the history of payments
innovation offers a clear cut guide to success for digital wallets. The path for the banks is also more
uncertain, but builds on clear strategic imperatives and historical moats. Following them will surely
ensure the continued relevance of banks even as a broad range of players do accelerate innovations
around how consumers move, pay and also manage their money.
Mamta, Prof. Hariom Tyagi , Dr. Abhishek Shukla in their The Study of Electronic Payment Systems,
Electronic payments are financial transactions made without the use of paper documents such as
cheques. Electronic payments include debit card, credit card, smart card, e-wallet, e-cash, electronic
cheques etc. E-payment systems have received different acceptance level throughout the world; some
methods of electronic payments are highly adopted while others are relatively low. This study aimed to
identify the issues and challenges of electronic payment systems and offer some solutions to improve
the e-payment system quality.
RESEARCH METHODOLOGY
The aim of this study is to assess the effects of demonetization towards digital payment system and
how far adaptation to this new world of digital transaction system.
Present research is exploratory as well as Descriptive in nature. Research is based on primary as well
as secondary data. Secondary data was collected from different sources like: books, magazine,
journals, research paper etc. Primary data was collected by using survey method; a structured
questionnaire is designed covering different dimension of factor digital payment system and its
influence on customers adaption Construct related to digitalization and its outcome were developed
based on review of the literature and research by the different authors. Descriptive research was used
for this study since it explores and describes variables relationships the way they occur without
manipulating them. This design is a framework used to attach the research components together
(Krishnaswami, 2003). The descriptive study is aimed at obtaining information can be subjected to
analysis, extraction of patterns and drawing of comparisons for clarification purposes and
provision of making decisions platforms. Both quantitative and qualitative data were obtained for
the purposes of comparison. Present research is based on primary as well as secondary data. For
collecting primary data, structured questionnaire was developed covering the various factors affecting
digital payment system and its adaption. An extensive literature survey was carried out to develop the
construct for the study in the form of questionnaire. Secondary data was collected through books,
online and print journals. The research instruments used in the study were self-administered
questionnaire with structured question items that were answered by the respondents. The
questionnaire thus developed was piloted on a sample of 300 respondents. Almost 280 responses were
received after editing 270 questionnaires was found suitable and taken for the study. Reliability
analysis was carried out and found to be 0.932. Descriptive statistical analysis (Mean, Standard
deviation) was carried out to analyse the relative importance of various construct developed for the
study.
FINDINGS/RESULTS
Table: 1: Demographic characteristic of Respondents
Categories Count Percentage
<18 31 11.5
18 23 48 17.8
Age Wise 24 30 65 24.1
Classification 31 40 82 30.4
41 50 33 12.2
>50 11 4.1
Gender Wise Male 138 51.1
Classification Female 132 48.9
Married
146 54.1
Divorced / Widowed /
Marital status 25 9.3
Separated
99 36.7
Single
Primary 26 9.6
Secondary 49 18.1
Educational
Technical college 36 13.3
Qualification
University Degree 144 53.3
Others (please specify 15 5.6

Below 50,000 201 74.4
Income Wise 50000 to 3,00,000 49 18.1
Classification 3,00,000 to 5,00,000 15 5.6
5,00,000 to 10,00,000 5 1.9
The demographic analysis is always important for any research, and if we talk about digital payment
than it is most important factor. So in this research a demographic analysis conducted, the
demographic analysis like age wise classification, divided into 6 groups below 18, 18 years to 23
years, 24 years to 30 years, 31 to 40 years, 41 years to 50 years and above 50 years. Gender Wise
Classification divided into two groups Male and Female, Marital status is divided into three groups
Married, Divorced/ widowed/ separated and Single, Educational Qualification divided into five
groups , Primary Secondary, Technical college ,University Degree and Others (please specify)
Income Wise Classification divided into four groups Below 50,000, 50000 to 3,00,000, 3,00,000 to
5,00,000 and 5,00,000 to 10,00,000 . the study reveals that in Age, wise classification below 18
years 11.5% respondent, between 18 to23 years 17.8 % respondent, between 24 to 30 years 24.1%
respondent, 31 to 40 years 30.4% respondent, 41 to 50 years 12.2 % respondent and above 50years
4.1% respondent. In this, research 51.1 % male respondent and 48.9 % female respondent. The
Marital status of respondent is 54.1 % married 9.3 % Divorced / Widowed / Separated and only
36.7% single. While 9.6% have primary, 18.1%have secondry, 13.3%have technical college, 53.3%
have university degree and 5.6 % have other educational qualification. In Income wise classification
74.4% respondent are below 50,000 monthly income, between 50000 to 300000 income group 18.1 %
respondent, 300000 to 500000 income group 5.6% respondent and only1.9% between 500000 to
1000000 monthly income group.
Table: 2: Payment methods most likely to use to credit your card
Responses
N Percent Percent of Cases
6a Cash 104 20.5% 38.7%
Cheque 68 13.4% 25.3%
Debit Card 172 33.9% 63.9%
Credit Card 82 16.2% 30.5%
On-line 44 8.7% 16.4%
Cash-loader 23 4.5% 8.6%
All of the above 14 2.8% 5.2%
Total 507 100.0% 188.5%
When this question asked which is the most likely payment method to credit your card , the responses
are amazing , this question asked to find the payment to fill their card , 33.9% use debit card , 20.5 %
use cash, 16.2% credit card 13.4% Cheque ,8.7 % online, 4.5% cashloader, 2.8% all the above .

Table: 3: Preferred mode of payment since 9 November
Responses
7a Netbanking 179 38.2% 66.3%
Credit /debit Card 171 36.5% 63.3%
Cash 89 19.0% 33.0%
E-wallet/Mobile
12 2.6% 4.4%
app
Cheque 17 3.6% 6.3%
Total 468 100.0% 173.3%
a. Group
This question asked to know the change of preferred payment mode since 9th November, 38.2% uses
Net banking, 36.5% uses Credit/Debit Card, 19.0 % cash, 2.6 % E-wallet/ Mobile app and only 3.6%
uses Cheque.
Following question asked to know the customer shifted to digital transaction or not, 83% shifted to
digital transaction after demonetization , 7.8 % not shifted to digital transaction after demonetization
and only 9.3% sifted for some time after demonetization .
Table: 4: Shift to digital transaction system after Demonetization
Frequency Percent Valid Percent Cumulative Percent
Valid YES 224 83.0 83.0 83.0
NO 21 7.8 7.8 90.7
Only for some time 25 9.3 9.3 100.0
Total 270 100.0 100.0
Table: 5: Demonetization change the transaction method

Valid YES 246 91.1 91.1 91.1
NO 16 5.9 5.9 97.0
Only for some time 8 3.0 3.0 100.0
Total 270 100.0 100.0
This Question asked to know that the transaction method change after demonetization, 91.1% says yes,
5.9% says no and only 3.0% says only for some time.

Table: 6: You use cashless payments if notes come back into circulation

For most transactions 188 69.6 69.6 69.6
For some transactions 56 20.7 20.7 90.4
For rare transactions 18 6.7 6.7 97.0
Never 8 3.0 3.0 100.0
Total 270 100.0 100.0
This question asked to know that cashless transaction make habit or not , 69.6 % respondent says For
most transactions, 20.7% says for some transactions,6.7 % says for rare transaction and only 3% says
never .
Table: 7: Change device passwords, PIN of debit/credit cards
Valid Once in 6 months 149 55.2 55.2 55.2
Once in a year 55 20.4 20.4 75.6
Every month 42 15.6 15.6 91.1
Never 24 8.9 8.9 100.0
Total 270 100.0 100.0
This question asked to know the password change frequency of the respondent, 55.2% says once in six
months, 20.4% says once in a year, 15.6% respondent says every month and only 8.9% says never
change their password/ pin.
Table: 8: Store card details on your phone or laptop
Valid Yes 158 58.5 58.5 58.5
No 112 41.5 41.5 100.0
Total 270 100.0 100.0
This question asked to know the habits of Indian society all the details save on Mobile/laptop,58.5 %
respondent save their card detail on phone/ laptop only 41.5% not save their card detail on phone/
laptop.

Table: 10: You think that demonetization killed your valuable time in lines
Valid Yes 154 57.0 57.0 57.0
No 88 32.6 32.6 89.6
Can't Say 28 10.4 10.4 100.0
Total 270 100.0 100.0
This question asked to know the value of time for the respondent, 57% respondent agree that
demonetization killed their valuable time in lines only 32.6% against this, 10.4% respondent have line
is no issue.
Table: 11: You think that it is difficult for illiterate to do their transaction by cards
Valid Yes 181 67.0 67.0 67.0
No 55 20.4 20.4 87.4
Can't Say 34 12.6 12.6 100.0
Total 270 100.0 100.0
This question asked to know that literacy effect the card transaction or not, 67% percent think that
difficult for illiterate to do their transaction by cards, 20.40% says No and 12.6% says cant say.
Table: 12: you typically (most often) withdraw money
Responses
16a At the bank teller 152 37.3% 56.3%
Automatic teller machine(ATM) 203 49.9% 75.2%
Point of Sale 23 5.7% 8.5%
Agent for Mobile banking (e.g.,
29 7.1% 10.7%
pay outlet, retail shop)
Total 407 100.0% 150.7%
a. Group
This question asked to know that the habit of withdraw money, 37.3% respondent at the bank teller ,
49.9% respondent withdraw at ATM, 5.7% at Point of sale and 7.1% Agent for Mobile banking (e.g.,
pay outlet, retail shop) withdraw money .
This question asked to know which me median use for online/ mobile payment, 36.9% use credit card,
41.8% uses debit card 13.7% uses Bank saving account /Net Banking , 4.9% not uses online/ mobile
payment.

Table: 13: Electronic payment system do you prefer for online / mobile payment
Responses
Credit Card 113 36.9% 41.9%
Debit Card 128 41.8% 47.4%
Bank saving account /Net Banking 42 13.7% 15.6%
I do not prefer online / mobile payment 15 4.9% 5.6%
Other 8 2.6% 3.0%
Total 306 100.0% 113.3%
Table: 14: Time of day is it most convenient to withdraw money

Valid
Frequency Percent Percent Cumulative Percent
Valid Between 6am and 10 am 26 9.6 9.6 9.6
During working hours
24 8.9 8.9 18.5
(10 am to 5 pm)
Between 5pm and 9pm 13 4.8 4.8 23.3
Between 9pm and 6am next
18 6.7 6.7 30.0
morning
Cant say/Anytime 189 70.0 70.0 100.0
Total 270 100.0 100.0
This question asked to know the convenient time for withdraw money, 9.6 % between 6am and 10 am,
8.9% during working hours (10 am to 5 pm), 4.8% Between 5pm and 9pm, 6.7% between 9 pm and 6
am next morning withdraw money, but huge 70% cant say / any time so this response say that
respondent not wanted restriction of time for withdrawing money.
Table: 15: Do you Use/hear any of the following for transaction
Responses
21a PayTm 137 29.0% 50.7%
BHIM 102 21.6% 37.8%
FreeRechage 135 28.5% 50.0%
Mobiquik 16 3.4% 5.9%
SBI Buddy 80 16.9% 29.6%
Future Pay 3 0.6% 1.1%

Total 473 100.0% 175.2%
a. Group
This question asked to know which online payment medium is popular , 29% Use/hear Paytm, 21.6%
BHIM, 28.5% FreeRechage, 3.4 % Mobiquik, 16.9% sbi buddy, 0.6 % FuturePay. So we can say that
Pay TM is most popular.
Table: 17: Main Reasons of Not using Digital payment System
Responses
24a Technological Trust 62 14.4% 23.0%
Transaction Charges 135 31.3% 50.0%
Not in Habit 135 31.3% 50.0%
server support 100 23.1% 37.0%
Total 432 100.0% 160.0%
a. Group
This question asked to know why people not adopting digital transaction , 14.4% respondent have not
technological trust, 31.3% have not wanted to pay transaction charges, 31.3 % have not habit to do
digital payment, 23.1% not use digital transaction due to server failure many time.
CONCLUSION
The digital payment had given relief and force to learn digital transaction after demonetization. People
adopted technology slowly, but dont wanted to pay extra for digital transaction. However, people of
India faces money problems during demonetization they suffer with no cash. In addition, for this
medium like paytm helps them.
REFERENCES
1. Alpana Killawala, Principal Adviser PRESS RELEASES Government of India vide their
Notification no. 2652 dated November 8, 2016
2. Demonetization Pdf Pros and Cons of Demonetization Rs 500,1000- Demonetization Essay -
https://www.studydhaba.com/demonetization-pdf retrieved on 3rd March, 2017.
3. "Demonetisation leads to highest ever surrender of Maoists in a month - Times of India".
4. "Demonetization: Government not mourning over 100 deaths due to cash-crunch, says Opposition
- Latest News & Updates at Daily News & Analysis". 8 December 2016.
5. Dipankar Dasgupta , Theoretical Analysis of Demonetisation Economic and Political Weekly
Vol. 51, Issue No. 51, 17 Dec, 2016
6. "E-commerce firms see 30% decline in cash on delivery orders post demonetisation". The Hindu.
2016-11-16. ISSN 0971-751X. Retrieved March 3, 2017
7. "E-commerce cash-on-delivery orders down by up to 30 per cent". The Indian Express. 2016-11-
17. Retrieved March 3, 2017

8. GITA GOPINATH Demonetization Dos and Donts https://www.project-
syndicate.org/commentary/india-tax-evasion-demonetization-by-gita-gopinath-2016-11 retrieved
on 02 March, 2017
9. Manpreet Kaur Demonetization: Impact On Cashless Payemnt System International Journal of
Science, Technology and Management (IJSTM) vol.no.-6 issue no. January 2017
10. https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=38520 retrieve on March 3, 2017
11. Reddy, R. Ravikanth. "Upset over price slump, farmer dumps lorry load of tomatoes". Retrieved
March 3, 2017
12. "Saha, Manojit; Rukhaiyar, Ashish (13 November 2016). "Micro lending badly hit; surge in use of
cards". The Hindu.

Demonetization and Its Impact On Adoption of Digital Payment: Opportunities, Issues and Challenges

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Volume 6, Issue 6 (June, 2017) UGC APPROVED Online ISSN-2277-1166

Published by: Abhinav Publication

Available online on www.abhinavjournal.com 1

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Table: 5: Demonetization change the transaction method

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Frequency Percent Valid Percent Cumulative Percent

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Table: 14: Time of day is it most convenient to withdraw money

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