UNIT-I

INTRODUCTION

1
Introduction:

India is one of the largest and fast growing countries in the world. Many countries are competing
to bring India’s economy down by various methods. Though India has its advantages, it also has
its equal share of disadvantages. The main disadvantage is India has the highest poverty rate
which is clearly due to the increase in black money circulation in the country. Hence, our PM
Mr. Narendra Modi has come up with wonderful ideas to make India the no: 1 country in all
aspects. Main support for the establishment of the ideas of Mr. Narendra Modi is due to the
growth of the field of technology.

Cashless India : Meaning

 Cashless India is nothing but using technology in handling cash flow. When people start
using E- banking and E-commerce methods to solve their payment issues automatically
the flow of black money will be stopped. The main advantage is to make people put all
their earnings into the bank and pay their taxes correctly so, that everything will be
systematized and well organized. This is the most effective way and fast method to stop
and to demolish the spreading of black money.

Which country is headed for first place in the race for first cashless country in the world?

In the cashless world Nayax operates, we provide solutions that are contributing to the world
becoming increasingly cashless and we foresee that cash will soon be phased out. We wonder,
which country will be the first cashless country in the world? Let’s look at the countries which
are already largely cashless, and how they’ve integrated cashless behavior into their daily lives.

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Sweden goes cashless

Countries like Denmark and Norway top the adoption of cashless payments, but the clear
Scandinavian leader in becoming the first cashless country is Sweden. Swedes have taken to
cashless payment wholeheartedly. If you visit Sweden, be sure to take your credit card or mobile
phone with you. Only 15% of payments involve cash transactions, and it’s rare that a person will
be limited to paying with cash. A popular mobile payment app, Swish, used by half of the
country’s 10 million population, enables payment transfers to people and businesses.

Sometimes it’s even difficult to use cash in Sweden. Drivers of Swedish buses no longer accept
coins or banknotes. The ubiquitous use of debit and credit cards by Swedes has led many stores
to no longer accept cash. Their motivation? Speedier service and creating a safer environment.
Storeowners believe the removal of cash lowers the risk of robberies. It also saves them valuable
time dealing with cash, which many banks have stopped accepting. Banks have also stopped
dispensing cash and removed their ATMs.

Contactless is a common payment method in countries across Europe

China is mad about QR codes

Another contender for the first cashless country in the world is in China. Home to the world’s
largest cashless market, and unlike Scandinavia the Chinese scene is dominated by scannable QR
codes. The Chinese have largely skipped mass credit card adoption and have instead embraced
QR codes. The main players are Alibaba’s Alipay, and WeChat, owned by Tencent, and has also
been taken up by China UnionPay, who were the main providers of debit cards before the mass
adoption of mobile payment.

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Everywhere you go in China you will see QR codes: supermarkets, amusement parks, temple
donations, and market vendors all ask for payment this way. Even traditional New Year’s gifts,
which include a monetary gift, now contain digital payments instead of cash. The benefits for the
smaller players count. For taxi drivers, it means avoiding robbery or receiving counterfeit notes.
For street vendors it means they don’t have to carry or give change. And the QR code trend is
spreading. In Japan and Finland, where lots of Chinese travel, have started accepting QR codes.

UK is all about Contactless

In the UK, credit/debit cards, contactless and online payments have taken over cash payments.
Increasing the British population reports they never carrying cash, and they don’t appear to need
to either. Like Sweden, cash is no longer accepted on public transport in the UK, and a large
number of ATMs have ceased operating. Travel around the UK and you’ll see the sign for
contactless, referred to by locals as tap and go, everywhere.

But it’s not only online shopping, big purchases and bills that are cashless. The British use their
cards for anything they can, including micro payments like coffee or a bag of chips. Mobile
payments are also becoming increasingly common, and surprisingly are seen being used more
often in pubs, bars and restaurants, places where cash was traditionally used.

Closing thoughts

It’s not only developed nations adopting cashless payments. Even countries like Somaliland have
thriving mobile payment scenes. It’s easy to see that ditching cash is convenient for consumers,
offering them speed, and making it possible for them to leave their homes with just a card or
mobile phone. But cashless payments are also good for business owners, who are provided with
a more streamlined way of handling transactions. The loss of cash might seem sad to some, and
scary to others, but Nayax is excited for this future and are happy that we’re already helping this
phenomenon become a reality.

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CASHLESS MODES :

Mobile wallet: This is basically a virtual wallet available on your mobile phone. You can store
cash on the mobile to make online or offline payments. Various service providers offer these
wallets via mobile apps, which you need to download on the phone. You can transfer the money
into these wallets online using credit/debit card or Net banking. This means that every time you
pay a bill or buy online via the wallet, you won't have to furnish your card details. You can use
these to pay fees, bills and make online purchases.

Plastic money: This includes credit, debit and prepaid cards. The latter can be issued by banks or
non-banks and can be physical or virtual. These can be bought and recharged online via Net
banking and can be used to make online or point-of-sale purchases, even given as gift cards.

Net banking: This does not involve any wallet and is simply a method of online transfer of funds
from your bank account to another bank account, credit card, or a third party. You can do it
through a computer or mobile phone. Log in to your bank account on the Net and transfer money
via national electronic funds transfer (NEFT), real-time gross settlement (RTGS) or immediate
payment service (IMPS), all of which come at a nominal cost ranging from Rs 5-55.

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BENEFITS (OR) ADVANTAGES OF CASHLESS ECONOMY

 Automatically drop, so people will no longer have to pay to collect what is rightfully
theirs.
 There will be efficiency gains as transaction costs across the economy should also come
down. Reduced instances of tax avoidance because it is financial institutions based
economy where transaction trails are left.
 It will curb generation of black money
 Will reduce real estate prices because of curbs on black money as most of black money is
invested in Real estate prices which inflates the prices of Real estate markets
 In Financial year 2015, RBI spent Rs 27 billion on just the activity of currency issuance
and management. This could be avoided if we become cashless society.
 It will pave way for universal availability of banking services to all as no physical
infrastructure is needed other than digital.
 There will be greater efficiency in welfare programmes as money is wired directly into the
accounts of recipients. Thus once money is transferred directly into a beneficiary’s bank
account, the entire process becomes transparent. Payments can be easily traced and
collected, and corruption will al1 in 7 notes is supposed to be fake, which has a huge
negative impact on economy, by going cashless, that can be avoided.
 Hygiene – Soiled, tobacco stained notes full of germs are a norm in India. There are many
such incidents in our life where we knowingly or unknowingly give and take germs in the
form of rupee notes. This could be avoided if we move towards Cashless economy.
 In a cashless economy there will be no problem of soiled notes or counterfeit currency.
 Reduced costs of operating ATMs.
 Speed and satisfaction of operations for customers, no delays and queues, no interactions
with bank staff required.
 A Moody’s report pegged the impact of electronic transactions to 0.8% increase in GDP
for emerging markets and 0.3% increase for developed markets because of increased
velocity of money.

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An increased use of credit cards instead of cash would primarily enable a more detailed record of
all the transactions which take place in the society, allowing more transparency in business
operations and money transfers.

DRAWBACKS (OR) DISADVANTAGES OF DIGITAL TRANSACTIONS

Higher risk of identity theft

“The biggest fear is the risk of identity theft. Since we are culturally not attuned to digital
transactions, even well-educated people run the risk of falling into phishing traps,” says Nagpal.
With the rising incidence of online fraud, the risk of hacking will only grow as more people hop
on to the digital platform.

 Besides, the latest move by the government to remove the two-factor authentication
process for online transactions up to `2,000, will not help. Irrespective of the size of
transaction, the absence of this additional layer of security will expose thousands to the
risk of identity theft. Another weak link is the inadequate redressal mechanism. “With the
poor redressal system in India, imagine what a poor rickshaw puller will do if he has his
Aadhaar ID stolen?” asks Mumbai based financial trainer Puller will do if he has his
Aadhaar ID stolen?” asks Mumbai based financial trainer P.V. Subramanyam.
 Given the tedious process and poor grievance redressal, people will have no easy
recourse if they lose money online,” adds Nagpal. There is no stringent legal process to
deal with this kind or scale of fraud. Add to it the mass identity theft from banks’ or
companies’ databases and it can turn into a financial nightmare akin to the data breach in
the Indian banking system in October this year.
 Losing phone
Since you will be dependent on your phone for all your transactions on the move, losing
it can prove to be a double whammy. It can not only make you susceptible to identity
theft, but you could also be rendered helpless in the absence of physical cash or any other
payment option. This can be especially problematic if you are travelling abroad or in
smaller towns or villages with lack of banking infrastructure or other payment options.
Another drawback is that you need to keep your phone constantly charged. If the phone

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 dies on you, you will be stranded, particularly if you are in the middle of an important
purchase or dealing with an emergency.
 Overspending
While there is no denying the convenience of card or mobile wallet transactions, it could
open a spending trap for an unsuspecting population. According to behavioural finance
theorists, the pain of parting with money is felt more acutely if you use physical cash
instead of a card. Hence, using cash instead of cards or mobile wallet acts as a natural
bulwark for people who find it difficult to control their spending.

OBJECTIVES OF THE STUDY :

 To study the trends and progress of the digital cash in India.

 To study the satisfaction levels in using digital cash.
 To study comfort levels in cashless transactions

RESEARCH METHODOLOGY


Data Collection:
 Primary Source: The study is based on both of primary and secondary data. For the
purpose of case study primary data have been collected from the students of kollapur pg
college with a questionnaire from them.
 Secondary Source: The secondary data have been collected from different articles &
website resources such as www.wikipedia.com, www.google.co.in and so many others.
We have used simple pictures, tables, & graphs to analysis & present the data. Apart
from this I also followed my supervisor’s instructions to finish the project.
 Sampling Methodology: The Primary data have been collected through a survey with a
pre-tasted structured QUESTIONNAIRE on a sample of randomly selected 40 students
in kollapur pg college, and its surroundings. method of sampling adopted for this
research is simple random sampling.

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Need of study:

 Open Bank accounts and ensure they are operationalized.

 Abolishment of government fees on credit card transactions; reduction of interchange fee
on card transactions; increase in taxes on ATM withdrawals.
 Tax rebates for consumers and for merchants who adopt electronic payments.
 Making Electronic payment infrastructure completely safe and secure so that incidents of
Cyber crimes could be minimized and people develop faith in electronic payment system.
 Create a culture of saving and faith in financial system among the rural poor.
 The Reserve Bank of India too will have to come to terms with a few issues, from
figuring out what digital payments across borders means for its capital controls to how
the new modes of payment affect key monetary variables such as the velocity of money.
 RBI will also have to shed some of its conservatism, part of which is because it has often
seen itself as the protector of banking interests rather than overall financial development.
 The regulators also need to keep a sharp eye on any potential restrictive practices that
banks may indulge in to maintain their current dominance over the lucrative payments
business.

Though it will take time for moving towards a complete cashless economy, efforts should be
made to convert urban areas as cashless areas. As 70% of India’s GDP comes from urban areas if
government can convert that into cashless it will be a huge gain. Therefore different trajectories
need to be planned for migration to cashless for those having bank account and for those not
having.

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 LIMITATION OF THE STUDY

The major limitations of the study are:

 A small sample size of 40 respondents are taken to primary data analysis. So I

cannot draw proper inferences about the respondents from this sample size.
 I have not used modern statistical tools to analysis the data.
 Due to shortage of time I have not been able to make a depth study.
 This study is based on the prevailing respondents’ satisfaction. But their
satisfaction may change according to time, fashion, need etc.
 This study is completely based up on the surroundings of kollapur pg students, I
have not taken broad area for sampling.

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 Chapter -2

REVIEW OF LITERATURE

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(Pathania, 2016) in his article mentions some of the benefits of cashless transactionsto nations
like increased GDP by using cards and reduced social cost, increased in financial inclusion due
to acceptance of e-payments, reduces the shadow economy, reduced in cash payment enables e-
commerce growth and facilitated trusted transactions online. He says that at 1.7% of GDP, India
incurs a much higher cost of cash compared with most developed economies. Every changing
digital world had a huge impact on Human resource. It had created an impacts on their jobs and
their workplaces. He mentions five challenges that the human resource has to in the present as
well as in the future. The five challenges are-
(i) figuring out when processes should be automated, versus when a human face or voice
is the best route,
(ii) better communicators in order to effectively leverage the digital space,
(iii) simplifying the data and provide a clear picture of their current workforce as the data
are scattered among multiple systems and acquired in varied formats,
(iv) fear from the legal department of using social media and
(v) HR has to evaluate what function can be automated and provide desired level of
services.(Lauby, Mar 23, 2011)
(Hunt, 2014),
Talked about the critical role to be played in ensuring the efficient and effective transition and
transformation from Industrial Era models and processes to their Digital Era upgrades. He further
said the social and digital technologies are transferring talent management. In addition to
transforming talent management, social and digital technologies are changing the nature of work
itself which have extensive human capital management implications, ranging from human capital
strategy, organizational structure, and staffing -to job design, training and development,
performance management, and compensation

.(Team, 2016),
paper clarifies the impact of Demonetization on the availability of credit, spending, level of
activity and government finances. The impact of the shock in the medium term is a function of
how much of the currency will be replaced at the end of the replacement process and the extent
to which currency in circulation is extinguished.

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(Sharma, 2017)
Conducted a survey to understand the potential for cashless economy in India, through an
extensive household survey of Jodhpur city. It was estimated the extent to which households
made non cash expenditure. It was also identified the bottlenecks which prevented households to
make non cash payments like Security, internet connection, loss of card, hackers activity, lack of
technology are worries of customers towards switching to cashless economy.

(Kumari D. N., Imapct of Cashless Economy on Common Man in India),

The paper meets an attempt to know the awareness about smart phone and the use of Smart
phone in rural India. The low literacy rates in rural India, along with the lack of infrastructure
like internet access and Power make things extremely difficult for people to adopt e-transaction
route.

(Kumari & Khanna, Cashless Payment: A Behavioural Change to Economic Growth, 2017),
The study examines the effect of adopting cashless payment on economic growth and
development of the developing countries. The paper discovered that the adoption of the cashless
economy policy can enhance the growth of financial stability in the country. It appears that much
has already been done in making the people aware of the cashless economy and that a sizeable
proportion of the people are actually awaiting the introduction of the cashless economy. Cashless
economy initiative will be of significant benefits to developing economy; hence the cashless
system will be helpful in the fight against corruption and money laundering. One most
significant contribution of the cashless economy is that it is expected to reduce the risk
associated with carrying cash.

(R., 2016),
in his paper what is the relationship between cashless economy and knowledge economy.
Cashless economy is the basic way to eradicate black money, but it also used to create awareness
about the knowledge economy among the common people. It improves the way of thinking and
use of their intellectual capital rights in a proper way.

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(Kumari D. , 2016),

her paper spread thelight on the basic concept of cashless transaction its security issues. She says
that insufficient infrastructure is also a major barricade for cashless transaction. Illiteracy is one
of the major issues in the path of cashless transaction, as per UNESCO report. Hacking is one of
the issues for cashless transaction as per the Economic time isthe major challenges in cashless
transaction.

(Gupta, 2017), T

he main of the paper was to find out scheme, achievements and challenges of Haryana
government for the cashless transaction. She says that in order to promote cashless transactions
in India Central Government has also launched Lucky Grahak Yojana and DigiDhan Vyapar
Yojana in which monetary benefits will be provided to citizens using cashless means for
transactions. The Haryana government has decided to observe a ‘cashless week’ from January 20
to January 27 to promote digital payment in the state. The government has also decided to
engage college students and staff (both teaching and non teaching) to promote the mission.

(Garg & Panchal, 2017),

her paper led light on the views of people on cashless economy in India. Responses from
respondents shows that cashless economy will help in curbing black money, counterfeit’s fake
currency, fighting against terrorism, reduce cash related robbery, helps in improving economic
growth of our country. Major challenges that can hinder the implementation of the policy are
cyber fraud, High illiteracy rate, attitude of people, lack of transparency & efficiency in digital
payment system. The study shows that the introduction of cashless economy in India can be seen
as a step in right direction. It helps in growth and development of economy in India

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 Chapter-3
AWARENESS OF CITIZENS ABOUT DIGITAL CASH
TRANSACTIONS

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This will eventually have the following chain effect:

1. Improvement in credit access and financial inclusion, which will benefit the growth of
SMEs in the medium/long run.
2. Reduce tax avoidance and money laundering thanks to the higher traceability of all the
transactions.
3. The increased use of credit cards will definitely reduce the amount of cash that people
will carry and as a consequence, reduce the risk and the cost associated with that

Steps taken by RBI and Government to discourage use of cash

 Licensing of Payment banks.

 Government is also promoting mobile wallets.Mobile wallet allows users to instantly send
money, pay bills, recharge mobiles, book movie tickets, send physical and e-gifts both
online and offline. Recently, the RBI had issued certain guidelines that allow the users to
increase their limit to Rs 1,00,000 based on a certain KYC verification.
 Promotion of e-commerce by liberalizing the FDI norms for this sector.
 Government has also launched UPI which will make Electronic transaction much simpler
and faster.
 Government has also withdrawn surcharge, service charge on cards and digital payments.

Challenges in making India a cashless economy

 Availability of internet connection and financial literacy.

 Though bank accounts have been opened through Jan Dhan Yojana, most of them are
lying un operational. Unless people start operating bank accounts cashless economy is
not possible.
 There is also vested interest in not moving towards cashless economy.
 India is dominated by small retailers. They don’t have enough resources to invest in
electronic payment infrastructure.

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  The perception of consumers also sometimes acts a barrier. The benefit of cashless
transactions is not evident to even those who have credit cards. Cash, on the other hand,
is perceived to be the fastest way of transacting for 82% of credit card users. It is
universally believed that having cash helps you negotiate better.
 Most card and cash users fear that they will be charged more if they use cards. Further,
non-users of credit cards are not aware of the benefits of credit cards.
 Indian banks are making it difficult for digital wallets issued by private sector companies
to be used on the respective bank websites. It could be restrictions on using bank
accounts to refill digital wallets or a lack of access to payment gateways. Regulators will
have to take a tough stand against such rent-seeking behaviour by the banks.

BARRIERS IN THE WAY OF MAKING INDIA A CASHLESS NATION

There some hindrances that need to be taken care of to make India’s economy a cashless one.
Let us have look at some of the issues that the government of the country needs to address to
make India go cashless.

1) About one-fifth of India’s population is under the BPL and they lack adequate access to the
basic necessities. Carrying out cashless transactions is too hi fi, a thing to be expected from
them.
2) Too much paper work goes on in any government office like Passport office, Income Tax
department, post office, etc. People working in those places are unwilling to work with modern
technologies.
3) There is no electrification in many villages in India. Without electrification, how can one have
access to the internet. If one has no connectivity with the world wide web, there is no scope to
carry out a cash-less transaction
.
4) E-wallets of several e-commerce entities provide customers with cash back facilities on
making purchases. Promotion of e-wallets like M-pesa, Paytm wallet, etc is yet to be carried out
on a mass scale.

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5) Payments through debit cards, credit cards, internet banking facilities sometimes are
associated with surcharges, service charges, etc. Withdrawal or removal of these burdens are to
be carried out.
6) It is to be guaranteed that there is high availability of internet and one can undertake
transactions in a secured manner. The government has to develop confidence among the masses
on the internet by imposing a strong check on the cyber crimes issues.
7) The vendors who are accepting or willing to accept payments via electronic means should be
rewarded by the government through provision of tax benefits. This sort of incentive is surely
going to encourage lots of business houses to have their online presence.
8) The late teenagers and the youth are the people who opt for cash-less transactions more than
others. In order to make India cash-less, people of all ages are required to become tech savvy
which is quite a difficult issue to address.
9) Most of the banks are having their presence only in urban and semi-urban areas. One can
hardly find a substantial number of banks carrying out their operations in rural areas. If people
residing in villages are not having their accounts in banks, it is impossible for them to carry out
transactions via electronic means.
10) The government is yet to eradicate the social evils like illiteracy and unemployment from the
country. If a person is illiterate or unemployed it is not possible for him/her to do something for
his/her living.

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 Chapter -4
DATA ANALYSIS AND INTERPRETATION

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Table-1: GENDER

Gender No. of. Respondents %

Male 24 60
Female 16 40
Total 40 100
Source: Questionnaire

Chart-1:

Gender

Male
40%
Female

60%

Source: Questionnaire

Interpretation:

From the above table it can be observed that 60% of the respondents are male and remaining
40% are female.

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Table-2 : AGE

Age No. of Persons %

<18 4 10
18-30 30 75
31-45 6 15
Total 40 100
Source: Questionnaire

Chart -2 :

No. of Persons
<18 18-30 31-45 Total

5%

50% 37%

8%

Source: Questionnaire

Interpretation:

The above pie chart explains that 10% of the people bellow 18 years , 75% of the
respondents in the age group of 18-30, 15% of the people are between 31-45 years.

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Table-3: EDUCATION LEVEL

No. of
%
Education level Persons
Illiterate 0 0
Degree 6 15
PG 34 85
Total 40 100
Source: Questionnaire

Chart -3:

Chart Title
Illiterate Degree PG

0%

15%

85%

Source: Questionnaire

Interpretation:

The above data reveals that 85% of the people are completed post graduate degree , 15% are in
under graduation, and 0% of the people were illiterates.

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Table-4: SMART PHONE USERS

Smart Phone No.of Persons %

Yes 30 75
No 10 25
Total 40 100
Source: Questionnaire

Chart-4 :

No.of Persons
Yes No

25%

75%

Source: Questionnaire

Interpretation:

On the basis of the above data the Smart phone users of the respondents are only 75% and
remaining 25% of respondents are not using the smart phones.

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Table-5: COMFORT WITH NEW TECHNOLOGY

Comfort with new No. of

%
Technology Persons
Very Low 0 0
low 0 0
Medium 30 75
High 6 15
Very High 4 10
Total 40 100
Source: Questionnaire

Chart-5 :

No. of Persons
Very Low low Medium High Very High

0% 0%

10%

15%

75%

Source: Questionnaire

Interpretation:

In the above data shows that 75% of the respondents are comfort with New Technology is
medium, 15% of the respondents preferred high, only few respondents very high comfort with
new technology (10%).

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Table-6 : LIKELY TO USE CASHLESS TRANSACTIONS

No .of
%
Likely Use Persons
More 24 60
Less 16 40
Total 40 100
Source: Questionnaire

Chart-6 :

Chart Title
More Less

40%

60%

Source: Questionnaire

Interpretation:

The above data shows that 60% of the respondents were likely to use cashless transactions more
and remaining (40%) were not likely to use cashless transactions.

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Table-7 : ENOUGH INFO TO MAKE INFORMED DECISION

No .of
%
Enough Info Persons
Yes 34 85
NO 6 15
Source: Questionnaire
Total 40 100

Chart-7:

No .of Persons
Yes NO

15%

85%

Source: Questionnaire

Interpretation:

According to the above statistics says that the 85% of the respondents got enough information to
make informed decision of cashless transactions and remaining respondents are says there no
sufficient information about cashless transactions.

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Table-8 : CASH TRANSACTIONS ARE HELPFUL AT COLLEGE

Helpful at College No.of Persons %

Yes 38 95
No 2 5
Total 40 100
Source: Questionnaire

Chart-8:

Helpful at College

27% Yes
No
73%

Source: Questionnaire

Interpretation:

The above data says that out of 40 students, the 95% of the students cashless transactions are
helpful at college and remaining 5% of the students said that not used cashless transactions at
their college.

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Table-9: PAYMENT METHOD

No.of
%
Payment Method Persons
Cash 6 15
Cheque 2 5
Debit Card 18 45
Credit Card 4 10
Online 10 25
Total 40 100

Chart-9:

Payment Method

Cash
17% Chequq
37% Debit Card
10%
Caredit Card
23%
13% Online

Source: Questionnaire

Interpretation:

In the above data shows that the out of 40 respondents using their payment method is 15% of the
respondents are using Cash, 45% of the respondents are using Debit card, 25% of the
respondents are using Online, 05% of the respondents are using Cheque and 10% of the
respondents are using Credit card

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Table -10 : ADOPT A CASHLESS

Adopt a cashless No. of Persons %

Discounts 26 65
cashbook rawards 4 10
easy Tracking of Records 8 20
Shortage of notes 2 05

Total 40 100
Source: Questionnaire

Chart-10 :

No. of Persons
Discounts cashbook rawards
easy Tracking of Records Shortage of notes

5%

20%

10%
65%

Source: Questionnaire

Interpretation :

From the above diagram we can say that the adopt a cashless with 65% of discounts,10% of
cashbook rewards, 20% of easy tracking of records, shortage of records is about 5%.

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Table-11 : BIGGEST CONCERN

Biggest Concern No.of Persons %

Security 4 10
Poor Internet connectivity 16 40
Merchant acceptance 18 45
Costs 2 05
Total 40 100
Source: Questionnaire

Chart-11 :

No.of Persons
Security Poor Internet connectivity Merchant acceptance Costs

5% 10%

45%
40%

Source: Questionnaire

Interpretation :

The above chart shows that majority of the respondents biggest concern out of 40 people 10% of
respondents are concern with Security, 40% of respondents are concern with poor internet
connectivity, 45% of respondents are concern with merchant acceptance and finally 05% of
respondents are concern with costs.

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Table -12 : PREFERRED MODE

Preferred mode No.of Persons %

Net banking 10 25
Debit/credit Card 10 25
cash 12 30
cherub 4 10
E-wallet/mobile 4 10
Total 40 100
Source: Questionnaire

Chart-12 :

No.of Persons
Net banking Debit/credit Card cash cherub E-wallet/mobile

10%
25%
10%

30% 25%

Source: Questionnaire

Interpretation :

It is found that out of 40 respondents 25 percentages of respondents used to preferred there

payment mode through cash followed by net banking method, debit or credit card and 25
percentage of respondents are paid on E- wallet/mobile basis.

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Table -13 : HIGH VALUE TRANSACTIONS

High value Transactions No.of Persons %

Net banking 10 25
Debit/credit Card 14 35
12
cash 30
cherub 4 10
E-wallet/mobile 0 0
Total 40 100
Source: Questionnaire

Chart-13:

No.of Persons
E-wallet/mobile

cherub

cash
No.of Persons

Debit/credit Card

Net banking

0 5 10 15

Source: Questionnaire

Interpretation:

Out of 40 respondents, 30 percentages of people were using cash basis transactions, 35

percentage of people using debit and credit cards and followed by using net banking source and
remaining and very few respondents are using e-wallets

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Table-14 : NOTES CIRCULATION

Notes circulation No.of Persons %

Most transactions 12 30
Some " " 16 40
Rare 12 30
Never 0 0
Total 40 100
Source: Questionnaire

Chart-14 :

No.of Persons
18
16
14
12
10
8
No.of Persons
6
4
2
0
Most Some " " Rare Never
transactions

Source: Questionnaire

Interpretation :

The above data reveals that the cash transactions before notes circulations 40 percentage of
people used some cashless transactions and followed by other categories.

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Table -15 : SAFELY SHARED ID

No. of Persons %
Safely shared ID
Aadhar 8 20
PAN 14 35
Bank A/c 14 35
Credit/Debit Card 4 10
None 0 0
40
Total 100
Source: Questionnaire

Chart-15:

No.of Persons
Aadhar PAN Bank A/c Credit/Debit Card None

0%

10%
20%

35%

35%

Source: Questionnaire

Interpretation :

The above chart shows that 20% of the respondents shared their Aadhar card, 35% of the
respondents shared their PAN card, 35% of the respondents shared their Bank account number
and remaining 10% of the respondents shared their credit and debit cards and very few (0%) of
respondents were not share any documents.

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Table-16 : REGULAR HOUSEHOLD EXPENSES

Regular household
No.of Persons %
expenses
Debit card 8 20
Cash 10 25
Net banking 20 50
By Post 2 05
Total 40 100
Source: Questionnaire

Chart-16:

No.of Persons
Debit card Cash Net banking By Post

5%
20%

50% 25%

Source: Questionnaire

Interpretation :

It is found that the out of 40 respondents their regular household expenses are used with 20%
debit card , 25% cash, 50% net banking and 05% by post.

35
 Chapter -5
FINDINGS, CONCLUSIONS AND SUGGESSIONS

36
 FINDINGS

 It can be observed that 60% of the respondents are male and remaining 40% are female.
 The data reveals that 40% of the people are completed post graduate degree , 20% are in
secondary level education and followed by under graduation, primary level education and
remaining 13% of the people were illiterates.
 The Smart phone users of the respondents are 75% and remaining 25% of respondents are
not using the smart phones . By this we can easily point out that the smart phone users are
high which will help in cashless transactions.
 The 75% of the respondents are medium comfort with New Technology ,15% of the
respondents preferred high , only few respondents are very high comfort with new
technology(10%). This gives the information that the technology using in cashless
transactions is highly sophisticated and not easily understood by the majority of users.
 The 60% of the respondents were likely to use cashless transactions more and remaining 40%
were not likely to use cashless transactions. Most of the people are likely to use cashless
transactions. Remaining 40% are not interested in cashless transactions.
 According to statistics says that the 85% of the respondents got enough information to make
informed decision of cashless transactions and remaining respondents are says there no
sufficient information about cashless transactions. So almost maximum members are getting
information.
 Out of 40 students, the 95% of the students cashless transactions are helpful at college and
remaining 5% of the students said that not used cashless transactions. therefore it is clear that
each and every student in college are using online transactions.
 The out of 40 respondents using their payment method is 15% of the respondents are using
Cash, 45% of the respondents are using Debit card, 25% of the respondents are using Online,
5% of the respondents are using Cheque and 10% of the respondents are using Credit
card.This analysis give the information that most of the people are using debit cards than the
cash and next place was occupied by online transactions.
 From the adopt a cashless Transactions with 65% of discounts,10% of cashbook rewards,
20% of easy tracking of records.so most of the students are preffering cashless transactions
because of the discounts offered in them.

37
 The majority of the respondents biggest concern out of 40 people, 10% of respondents are
concern with Security, 40% of respondents are concern with poor internet connectivity, 45%
of respondents are concern with merchant acceptance and finally 05% of respondents are
concern with costs. Major concern is merchant acceptance.
 It is found that out of 40 respondents 25 percentages of respondents used to preferred there
payment mode through cash followed by net banking method, debit or credit card and 25
percentage of respondents are paid on E- wallet/mobile basis.
 Out of 40 respondents, 30 percentages of people were using cash basis transactions, 35
percentage of people using debit and credit cards and followed by using net banking source
and remaining and very few respondents are using e-wallets
 The above data reveals that the cash transactions before notes circulations 40 percentage of
people used some cashless transactions and followed by other categories.
 The above chart shows that 20% of the respondents shared their Aadhar card, 35% of the
respondents shared their PAN card, 35% of the respondents shared their Bank account
number and remaining 10% of the respondents shared their credit and debit cards and very
few (0%) of respondents were not share any documents.
 It is found that the out of 40 respondents their regular household expenses are used with 20%
debit card , 25% cash, 50% net banking and 05% by post.

38
CONCLUSIONS

1. Since the technology is not that much comfort and it is sophisticated many users of internet
are not preferring online transactions.
2. The main reason for not interested in performing cashless transactions is may be the
technology which is difficult to understand and not easy to use.
3. Though the technology is advancing very rapidly the students are ready to use the cashless
transactions because of its various advantages in using cashless transactions.
4. By keeping in mind about the difficulties in carrying the physical cash mpst of the students
are using the debit cards and online transactions.
5. Most of the students are attracting towards the discounts in cashless transactions. So most of
the discounts will Impact the cashless transactions.
6. The acceptance of cashless transactions should be come from the side of merchants and one
of the biggest concern on cashless transactions arepoor internet connectivity.
7. The first step taken to digital India was the demolition of Rs 500 and Rs 1000 notes in India.
I do understand that it will be very difficult to adapt to such changes immediately but if such
immediate actions were not to be taken then India’s economical conditions will only turn
from bad to worse. Thus, as citizens and youths of India it is in our hands to promote this
magnificent India encouraged by our PM Mr. Narendra Modi who has a bright vision
towards the upcoming of future India. Let us teach our brothers and sisters of this country the
benefits of E- banking, Digital India Vision etc if they do not know as this is also one way to
embellish a better relationship among the public of different religions.
8. In India, only 5% of transactions in the economy is being taken place through
electronic means. The Modi government is planning to make India a cash-less nation soon as
a measure to address the issues of black money, fake currency notes, tax evasion, etc. It is
highly probable that Goa is going to become the first state in the country to become cashless
from December 31st of the current year. Making India a cashless nation is going to take a lot
of time to make it happen. None of the country across the world has reached the aim of total
cashless services. The target is even tough for a developing country like India to achieve.

39
Suggestions

 It is suggested that the technology using in the cash less transactions should be simplified
for wide acceptance.
 The more attractive offers should be given to the cashless transacting people.
 Since the next generation is built with the current students the awareness on cashless
transactions should be given to the students. They can easily acquire the knowledge of
new technology.
 The more simplicity and security will make to prefer the online transactions. The steps
have to take in this regard.
 Special offers and discounts should be provided for increasing cashless transactions and
the availability of records should also improve because they have also major impact on
cashless transactions.
 Merchants should accept the cashless transactions mostly and the internet speed should
also concentrate to increase the cashless transactions.
 Each and every institution and also government and all individuals of the country has to
support digital India and this will help India to become cashless.

40
 Questionnaire on Cashless Economy in India
1) Name :___________________________ 2) Gender : (Male/Female)

3) What is the highest level of education you have completed?

a) Illiterate b) Primary Level c) Secondary Level d) College Degree e) Post Graduate

4) Age : a) Below18 b) 18 - 30 c) 31- 45 d) 46 - 60 e) Obove 60

5) Occupation: a) Student b) Employee c) Farmer d) Business

6) Do you own a Smart phone? (Yes/No)

7) Please rate your comfort level with New Technology?

a) Very Low b) Low c) Medium d) High e) Very High

8) What are your top 3 reasons for using cash instead of other payment options today?

Reason 1 ………………………………………………………………………………….

Reason 2 ………………………………………………………………………………….

Reason 3 ………………………………………………………………………………….

9) What are your top 3 concerns if cash was replaced by electronic payments?

Concern 1 …………………………………………………………………………………

Concern 2 ………………………………………………………………………………...

Concern 3 …………………………………………………………………………………

10) If a cashless system was introduced would you be likely to use? (More/Less)

11) Do you feel you have enough information to make an informed decision? (Yes/No)

12) Would the benefits that a cashless system brings be helpful to you at your time at
College? (Yes/No)

13) Which of the following payment methods would you be most likely to use to credit your
card?

41
a) Cash b) Cheque c) Debit Card d) Credit Card e)On-line

14) Why would you adopt a cashless payment system?

a) Discounts b) Cashbook Rewards c) Easy tracking of records d) Shortage of notes

15) What is your biggest concern around cashless Payment?

a) Security b) Poor Internet connectivity c) Merchant Acceptance d)Costs

16) What has been your Preffered mode of payment since 9th Nov 2016 ?

a) Net banking b) Credit/debit card c) Cash d) Cheque e) e-wallet/mobile

17) For high value transactions, what is your preffer mode of payment?

a) Net banking b) Credit/debit card c) Cash d) Cheque e) Mobile app/ e-wallet

18) Would you use cashless payments if notes came back into circulation?

a) Most transactions b) Some transactions c) Rare Transactions d) Never

19) What can be safely shared when you do cashless transactions?

a) Aadhar b) PAN c) Bank A/C No. d) Credit/debit card d)None

20) How do you pay for regular household expenses such as bills and mortgages?

a) Debit Card b) Cash c) Net banking d) By post

21) How aften do you draw cash out of an ATM?

a) Daily b) Weekly c) Monthly d) Only Incase of Emergency

22) What is your overall satisfaction with cashless transactions?

a) Highly satisfied b) Satisfied c) Di satisfied d) Highly Dissatisfied

23) Suggestions:

………………………………………………………………………………………………………

………………………………………………………………………………………………………

……………………………………………………………………………………………………....

42
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.Kumari, D. N. (n.d.). Imapct of Cashless Economy on Common Man in India.

Kumari, D. N., & Khanna, J. (2017). Cashless Payment: A Behavioural Change to Economic Growth.
IJSRE

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R. R. (2016). Cashless Economy leads to Knowledge Economy through Knowledge Management.
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