Saansad Adarsh Gram Yojana (SAGY)
Designing a data-driven framework for rural transformation in India
Going Cashless – Perceptions, Usage and Behaviour towards Digital Payments before and after Demonetisation
Research at a Glance
To move closer to a cashless economy, India must increase the adoption of digital payments across all segments, especially within the unorganised retail sector, which continues to rely heavily on cash. The Going Cashless study by CDFI provides valuable insights into the perceptions, usage, and behavioural trends of consumers and Kirana retailers towards digital payments before and after demonetisation. The research aimed to identify the key drivers, barriers, and opportunities for digital payment adoption and to understand how a major policy shift like demonetisation influenced financial behaviour and transaction patterns across different economic groups.
2020
MN+
consumers surveyed to assess perceptions and usage of digital payments.
620
MN+
+ retailers interviewed to understand adoption trends in the unorganised sector.
Understanding how demonetisation reshaped India’s shift towards digital payments.
The study was conducted in two phases.
- Pre-demonetisation phase (September 2016): 305 consumers and 88 retailers participated.
- Post-demonetisation phase: 1,715 consumers and 535 retailers were surveyed across both the original and new districts.
Findings revealed that demonetisation significantly increased awareness and short-term adoption of digital payments, especially among urban consumers and organised retailers. However, the unorganised retail sector continued to face challenges such as limited access to digital infrastructure, low awareness of available payment solutions, and concerns over transaction costs and reliability.
The study also highlighted that while digital literacy and mobile usage increased post-demonetisation, cash continued to remain dominant in rural and semi-urban markets. The results point towards the need for sustained awareness campaigns, infrastructure support, and merchant incentives to enable a truly inclusive digital payment ecosystem.
Who can benefit from this study?
Government and Regulatory Bodies
Can use the findings to design policies that bridge the urban-rural divide in digital payment adoption and support infrastructure development.
Banks, Fintechs and Industry Stakeholders
Can apply the insights to develop user-friendly digital payment solutions and incentive models that drive sustained adoption among small retailers and consumers.
