Impact of Digital Transactions on Indian Economy: Pre and Post Demonetization


  • Parameshwar H. S.
  • Sweta Das
  • Sayan Mukherjee
  • Ruma Saha
  • Siddharth Misra


The purpose of this paper is to investigate the various reasons of the lack of penetration of digital transactions in India and what are the feasible attributes that can be altered to bridge that gap. The objective of this study is to get a deeper insight into how the change has been brought in and how far the journey is left to call it a success. The design of the study is such that the reader gets a comprehensive outlook on the various reasons behind the acceptance and non-acceptance of digital modes of payment and how people have indulged in using these in light of steps taken by the government. The paper discusses the trend of using non-cash payment methods such as Electronic transfer, E-wallets and others in light of demonetization. It is evident from the data that demonetization played a primordial role is influencing these trends in terms of growth rates in these payment volumes. Inhibition from the user’s end has various underlying reasons. The practical implication of this study shows the challenges faced to implement the “cashless economy” in India and how it can be solved. It also shows the progress of digitalization in the current scenario of Indian economy. The originality of this paper focuses on the penetration of digitalization and digital payments in rural India. The focus is done primarily focusing on the rural side of Indian economy.