research-article

Cashing out: digital payments and resilience post-demonetization

Authors:

Nanjundi Karthick Krishnan,

Ramgopal Chandrasekaran,

Joyojeet PalAuthors Info & Claims

ICTD '19: Proceedings of the Tenth International Conference on Information and Communication Technologies and Development

Article No.: 8, Pages 1 - 16

https://doi.org/10.1145/3287098.3287103

Published: 04 January 2019 Publication History

Abstract

We explore how different segments of the population in India coped, in terms of business transactions, with the sudden decision of the government to stop accepting certain legal tender bills, popularly referred to as demonetization. The decision to demonetize was followed by a large-scale push for adoption of digital payments. Behavioral changes during such shocks do have specific nuances different from those during normal times. Using the concept of resilience, we examine the drivers of behavior change that differentiated those that were able to make the switch compared to those that weren't. Those technologically more adept were more resilient to the shock, in terms of being able to navigate through new means of exchange. Also, rural poor showed greater resilience than urban poor, a function of the level of homogeneity in those societies with respect to technology adoption and the ability to cope without changing cash practices. We also found that those who had bank accounts and relied largely on those accounts for daily transactions, without being aware of alternate modes, were impacted the most. From a policy perspective this research cautions against unintended consequences of purely access-driven incentives to behavior change, advocating instead a holistic approach.

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Cited By

Sharma DVerma RSingh H(2023)An Evaluation of Cashless Transactions During Pre- & Post-Demonetization Era in IndiaDigital and Sustainable Transformations in a Post-COVID World10.1007/978-3-031-16677-8_7(211-230)Online publication date: 1-Jan-2023
https://doi.org/10.1007/978-3-031-16677-8_7
Azeez N. P. AImdadul Haque MAkhtar S(2022)Digital Payment and Economic Growth: Evidence from IndiaApplied Economics Quarterly10.3790/aeq.2022.141830168:2(79-93)Online publication date: 1-Apr-2022
https://doi.org/10.3790/aeq.2022.1418301
Azeez N(2022)Does Demonetisation in India Achieve its Objectives?Economic and Regional Studies / Studia Ekonomiczne i Regionalne10.2478/ers-2022-002315:3(336-350)Online publication date: 28-Sep-2022
https://doi.org/10.2478/ers-2022-0023
Show More Cited By

Index Terms

Cashing out: digital payments and resilience post-demonetization
1. Applied computing
  1. Law, social and behavioral sciences
    1. Economics
2. Social and professional topics
  1. Professional topics
    1. Computing and business
      1. Economic impact

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cover image ACM Other conferences

ICTD '19: Proceedings of the Tenth International Conference on Information and Communication Technologies and Development

January 2019

422 pages

ISBN:9781450361224

DOI:10.1145/3287098

Conference Chairs:
Rajesh Chandwani
IIM Ahmedabad, India
,
Pushpendra Singh
IIIT Delhi, India
,
Program Chairs:
Neha Kumar
Georgia Institute of Technology, USA
,
Rajesh Veeraraghavan
Georgetown University, USA

Copyright © 2019 ACM.

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Published: 04 January 2019

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ICTD '19

ICTD '19: Tenth International Conference on Information and Communication Technologies and Development

January 4 - 7, 2019

Ahmedabad, India

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Cited By

Sharma DVerma RSingh H(2023)An Evaluation of Cashless Transactions During Pre- & Post-Demonetization Era in IndiaDigital and Sustainable Transformations in a Post-COVID World10.1007/978-3-031-16677-8_7(211-230)Online publication date: 1-Jan-2023
https://doi.org/10.1007/978-3-031-16677-8_7
Azeez N. P. AImdadul Haque MAkhtar S(2022)Digital Payment and Economic Growth: Evidence from IndiaApplied Economics Quarterly10.3790/aeq.2022.141830168:2(79-93)Online publication date: 1-Apr-2022
https://doi.org/10.3790/aeq.2022.1418301
Azeez N(2022)Does Demonetisation in India Achieve its Objectives?Economic and Regional Studies / Studia Ekonomiczne i Regionalne10.2478/ers-2022-002315:3(336-350)Online publication date: 28-Sep-2022
https://doi.org/10.2478/ers-2022-0023
Kameswaran VHulikal Muralidhar S(2019)Cash, Digital Payments and AccessibilityProceedings of the ACM on Human-Computer Interaction10.1145/33591993:CSCW(1-23)Online publication date: 7-Nov-2019
https://dl.acm.org/doi/10.1145/3359199
Sen AGhatak DKumar KKhanuja GBansal DGupta MRekha KBhogale STrivedi PSeth AChen JMankoff JGomes C(2019)Studying the discourse on economic policies in India using mass media, social media, and the parliamentary question hour dataProceedings of the 2nd ACM SIGCAS Conference on Computing and Sustainable Societies10.1145/3314344.3332489(234-247)Online publication date: 3-Jul-2019
https://dl.acm.org/doi/10.1145/3314344.3332489
Ilavarasan P(2019)Present and future of the use and impact of information and communication technology in informal microenterprises: Insights from IndiaTHE ELECTRONIC JOURNAL OF INFORMATION SYSTEMS IN DEVELOPING COUNTRIES10.1002/isd2.1209185:3Online publication date: 30-Apr-2019
https://doi.org/10.1002/isd2.12091

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