Nenavath Sreenu
Abstract
The present world has moved from cash transactions to cashless transactions. This article examines the impact of implementation of a cashless payment policy on economic development and gradual transition to a cashless economy in India. For this study, the focus is on the time period from 2010 to 2018. The data used for this study are tele transfer, through credit or debit card payment, check payment, and E-money on Indian economic growth. The study has employed the panel vector error correction model, Padroni residual cointegration, and the hypothetical prototypical method. The results show that customers and sellers accept a cashless system policy. In the short period, we have a causality model running from a card system to a check payment and telegraphic transfer system, and a causality model running from a telegraphic payment system to a card payment system. In the long period, there is a positive outcome in using a cashless policy on Indian economic growth. However, the use of a cashless policy on Indian economic development in the short term will be negative, whereas in the long term it will impact positively. Hence, any kind of economic strategy that endorses a cashless payment system cannot have positive impact on the economic development directly.
- D. Abrazhevich. 2004. Electronic Payment Systems: A User-Centered Perspective and Interaction Design. Technische Universiteit Eindhoven.Google Scholar
- A. Alawiye-Adams. 2013. The cashless payment system as a panacea to the national security challenges in Nigeria. SSRN Electronic Journal. Abstract 2337239.Google Scholar
- W. F. Baxter. 1983. Bank interchange of transactional paper: Legal and economic perspectives. Journal of Law and Economics, 26, 3, 541--588.Google ScholarCross Ref
- BCG. 2016. Digital Payments 2020. Retrieved June 2, 2020 from https://image-src.bcg.com/Images/BCG-Facebook-Encashing-on-digital-Jun-2017_tcm21-163357.pdf.Google Scholar
- W. Bolt, D. B. Humphrey, and R. Kiteboard. 2008. Transaction pricing and the adoption of electronic payments: A cross-country comparison. International Journal of Central Banking, 4, 1, 89--123.Google Scholar
- Capgemini. 2015. World Payments Report. Retrieved June 2, 2020 from https://www.capgemini.com/.Google Scholar
- M. Conti. 2014. The introduction of the Euro and economic growth: Some panel data evidence. Journal of Applied Economics, 17, 199--211.Google ScholarCross Ref
- A. Das and R. Agarwal. 2010. Annual Reports, Archives, 2011-2016. Retrieved April 1, 2017 from https://rbi.org.in/Scripts/AnnualReportMainDisplay.aspx.Google Scholar
- K. H. Fox. 1986. Another step toward the cashless society? The 1978 federal electronic fund. American Business Law Journal, 18, 2, 209--224.Google ScholarCross Ref
- S. Gangopadhayay. 2009. How can technology facilitate financial inclusion in India? A discussion paper. Review of Market Integration, 1, 2, 223--256.Google ScholarCross Ref
- S. Goel. 2016. Cyber-Crime: A growing threat to Indian banking sector. Recent Innovations in Science, Technology, Management and Environment, Vol. 18. 13--20.Google Scholar
- D. B. Humphrey. 2004. Replacement of cash by cards in US consumer payments. Journal of Economics and Business, 56, 211--225.Google ScholarCross Ref
- P. M. Jain. 2006. E-payments and E-banking. Indian Banker, 3, 108--113.Google Scholar
- C. Kao. 1999. Spurious regression and residual-based tests for cointegration in panel data. Journal of Econometrics, 90, 1--44.Google ScholarCross Ref
- Karamjeet Kaur. 2016. E-payment system on E-commerce in India. Journal of Engineering Research and Applications 5, 5, Part 6 (May 2015), 63--73.Google Scholar
- J. Khan and M. Craig-Lees. 2009. Cashless transactions: Perception of money in mobile payments. International Business and Economic Review, 1, 1, 23--32.Google Scholar
- J. Khan and M. Craig-Lees. 2014. Cashless transactions: Their effect on purchase behaviour. International Business and Economics Review, 1, 1, 1647--1989.Google Scholar
- W. Liao and J. Handa. 2010. Is the modern economy heading toward a cashless and checkless one? Evidence from the payments system in Canada. IUP Journal of Bank Management, 9, 48--71.Google Scholar
- B. Mukhopadhyay and S. Rath. 2011. Role of MFIs in financial inclusion. Review of Market Integration, 3, 3, 243--286.Google ScholarCross Ref
- M. Niranjanamurthy and D. D. Chahar. 2013. The study of E-commerce security issues and solutions. International Journal of Advanced Research in Computer and Communication Engineering, 2, 7, 2885--2895.Google Scholar
- M. E. Onuh. 2013. Electronic payment system and economic growth: A review of transition to cashless economy in Nigeria. International Journal of Environmental Science and Technology, 2, 913--918.Google Scholar
- S. Pakojwar and D. N. Uke. 2014. Security in online banking services—A comparative study. International Journal of Innovative Research in Science, Engineering, and Technology, 3, 10, 16850--16857.Google ScholarCross Ref
- J. Park. 2012. Corruption, soundness of the banking sector, and economic growth: A cross-country study. Journal of International Money and Finance, 31, 907--929.Google ScholarCross Ref
- A. Paul and O. Friday. 2012. Nigeria's cashless economy: The imperatives. International Journal of Management and Business Studies, 2, 31--36.Google Scholar
- P. Pedroni. 1999. Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and Statistics, 61, 653--670.Google ScholarCross Ref
- V. Prakash. 2016. E-commerce in India: Its growth and cyber challenges. International Journal of Science Technology and Management, 5, 8, 796--802.Google Scholar
- Rachna and P. Singh. 2013. Issues and challenges of electronic payment systems. International Journal for Research in Management and Pharmacy, 2, 9, 25--30.Google Scholar
- E. M. Rogers. 1995. Diffusion of Innovations (4th ed.). Free Press, New York, NY.Google Scholar
- L. Slesman, A. Z. Baharumshah, and W. Ra'ees. 2015. Institutional infrastructure and economic growth in member countries of the Organization of Islamic Cooperation (OIC). Economic Modelling, 51, 214--226. DOI:10.1016/j.econmod.2015.08.008Google ScholarCross Ref
- N. Srinivas. 2006. An analysis of the defaults in credit card payments. Southern Economics, 7, 19--21.Google Scholar
- CH. B. V. L. Sudheer and M. Ashrefunnisa. 2017. Electronic payment in cashless economy of India: Problems and prospect. International Journal of Scientific Engineering and Technology Research, 6, 7, 1398--1402.Google Scholar
- Worthington. 1995. The cashless society. International Journal of Retail and Distribution Management, 23, 31--40.Google ScholarCross Ref
- M. Zandi, V. Singh, and J. Irving. 2013. The impact of inequality on economic growth. Moody's Analytics 12 (2013), 1--16.Google Scholar
Index Terms
- Cashless Payment Policy and Its Effects on Economic Growth of India: An Exploratory Study
Recommendations
The impact of e-money on the monetary policy
ICEC '05: Proceedings of the 7th international conference on Electronic commerceE-money is fast becoming the currency of a new era, since the use of electronic money has slowly grown over the last decade. E-money is regarded as the second radical transformation of monetary form. E-money not only impact essentially on the electronic ...
Factors Influencing Merchants’ Adoption of Cashless Payment Systems in Sweden
New Sustainable Horizons in Artificial Intelligence and Digital SolutionsAbstractSweden is practically becoming a cashless society and possesses a clear sign of future competitiveness in cashless payment which has a wider impact on businesses and society at large. However, according to the existing research, there is a lack of ...
Comparative Evaluation of User Interfaces for Preventing Wasteful Spending in Cashless Payment
HCI in Business, Government and OrganizationsAbstractMore and more people pay using cashless payment methods rather than paying cash. In addition to online stores, more and more stores in the real world accept cashless payments, such as Apple Pay, Google Pay, etc. However, people notice that using ...
Comments