The IUP Journal of Bank Management
An Empirical Study of Transaction Patterns of Salaried Class: Cashless Versus Cash

Article Details
Pub. Date :Nov, 2018
Product Name : The IUP Journal of Bank Management
Product Type : Article
Product Code : IJIT21809
Author Name : Mukesh Pal, Pooja Jain
Availability : YES
Subject/Domain : Finance
Download Format : PDF Format
No. of Pages : 16



With rapid technological changes in banking domain post demonetization in India, cashless payment has become a part of daily vocabulary. Cashless transactions primarily involve online transfer of money to another bank, online third party payment, Point of Sale (POS) payment through card, payment through wallet and several other types of online transactions. RBI releases the macro level transaction details of banking sector both in terms of numbers and monetary value on a monthly basis, but this data do not capture micro level or individual account transaction patterns which are also important to understand the cashless behavior of the society. This study captures and explores monthly transaction patterns of salaried employees using internet banking and their cashless usage behavior. The study has been carried out through a survey of transactions in bank accounts of 50 respondents from Dehradun city. The pattern of transactions is studied for its correlation with demographic profile of the respondents. Cash usage is found to be 42%, and higher usage of cash is reported in the age group of 20 to 30 years and in the income group of 10K to 30K. Maximum cashless transactions are carried out for online transfers, shopping and bill payment. Cashless transactions involving POS usage are found to be comparatively less in monetary value. As the study is exploratory in nature, a few areas for further research on cash versus cashless usage societal behavior have also been suggested.


Cash is physical money. Traditionally, India is a cash-based society. In recent times, with the spread of reach in banking services and increasing IT usage in banking, new cashless payment methods like cards, wallets, direct debit, Point of Sale (POS), mobile banking, internet banking, Aadhaar-based payment system and Unified Payments Interface (UPI) are increasingly being used across the country. These newer payment methods are slowly replacing the traditional system of cash payment, but still cash system dominates economic transactions (Gupta, 2017). The reasons cited for low usage of cashless payment methods are non-availability of debit/credit cards, lack of infrastructure for POS transactions, habit persistence of consumers, perceived risk in the usage of digital medium, non-acceptance of digital payment instruments, etc. (Thomas, 2013; and Bappaditya, 2014).


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