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Financial transformation through digitalisation: India’s dual path of cash and cashless transaction

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Listed:
  • Nasira BANU M.

    (University of Calicut, India)

  • Ibrahim CHOLAKKAL

    (University of Calicut, India)

  • Abdul AZEEZ N.P.

    (Aligarh Muslim University, India)

Abstract

India has been actively pursuing digital financial transformation, and the government has implemented various initiatives to promote a cashless economy. The recent demonetization policy led to a significant push towards digital payments and a surge in the usage of digital wallets, mobile banking, and other cashless methods. These digital transformations aimed to enhance financial inclusion by providing banking and financial services to a larger population segment, especially in rural areas. Despite the push for digital transactions, certain challenges persisted, especially the existence of physical cash. This paradox is evident in many economies worldwide, including India. This study tries to analyze the trend towards the digital financial transformation of the Indian economy and prove the paradoxical situation of the cash-based economy. The study also examines the impact of digital infrastructures (DI) and payment modes and channels (PMC) on total digital payment (TDP) in India.

Suggested Citation

  • Nasira BANU M. & Ibrahim CHOLAKKAL & Abdul AZEEZ N.P., 2024. "Financial transformation through digitalisation: India’s dual path of cash and cashless transaction," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(639), S), pages 141-160, Summer.
    • Handle: RePEc:agr:journl:v:xxxi:y:2024:i:2(639):p:141-160
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    References listed on IDEAS

    as
    1. Suman Dahiya & Manoj Kumar, 2020. "Linkage between Financial Inclusion and Economic Growth: An Empirical Study of the Emerging Indian Economy," Vision, , vol. 24(2), pages 184-193, June.
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