DECLARATION

I hare by declare that the project report titled “To study the awareness and usage level on
mode of payments among customers Cash / Cashless” is submitted by me to

S.M.J.N (P G) college Haridwar, for the fulfillment of the degree of master of

commerce.

I further declare that this project o2

r any part there has not been submitted previously to any university for the award of a
degree or diploma or title recognition before and that it represent the original work done
me.

Date: SURAJ

Place: Hardwar Roll No.

Enrollement No.

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 CERTIFICATE
This is certify that this project work titled “To study the awareness and usage level on
mode of payments among customers cash / cashless” has been completed by SURAJ of
class M.COM 4th semester 2015-2017 batch and as information and declaration given by
the candidate, this is her own effort in my belief.

Dr. SUNIL KUMAR BATRA

(H.O.D)

COMMERCE DEPARTMENT

S.M.J.N. (P.G) COLLEGE

HARIDWAR, UTTRAKHAND

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 ACKNOWLEDGMENT
Completion of a project work is a difficult task. The researchers faces number of problems
in course of its investigation and giving it a final shape. The task however, become
simple and smooth if the individual gets co-operation and guidance from various related
quarter. The very fact that the present study has been able to take a concrete shape shows
the amount of co-operation and help extended to me.

First of all, my thankfulness to God, who give me this opportunity and gives blessing to
me in every time.

I would also like to acknowledge my thankfulness to my teacher Dr. Sunil Kumar

Batra. I also wish to acknowledge help provided by of S.M.J.N.(PG) College.

My special thank to my friends for their blessings and encouragement for various
stages of the study.

Without the proper guidance any suck kind of work in this world in not possible
neither the start nor the end. Last but not least I gratefully acknowledge my deep sense of
gratitude to my project guide Dr. Sunil Kumar Batra, Head Dept. of commerce S.M.J.N.
(PG) College, Haridwar (Uttarakhand) for his invaluable guidance, supervision and co-
operation right from the beginning of the idea to work on the subject to its completion. I
will remain indebted to him for this in my life time.

DATE: SURAJ

PLACE: HARIDWAR Roll No.15325322073

Enrollment No.G12572213

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 CONTENTS
Declaration

Certificate

Acknowledgement

Contents name

1. Introduction

2. Literature review

3. Research Methodology & Objectives

4. Data analysis & Interpretation

5. Result & Conclusion

6. Suggestions & recommendation

 Refferences
 Annexure

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 Chapter:-1
INTRODUCTION

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 1.1 Introduction

This study is concerned with gaining a better understanding of two contrasting causes
when it comes to the popularity of electronic payment methods Existing literature has as
of yet explicitly focused on How this Phenomenon is exhibited on a National level, with
in the limits of single countries. Although information is Plentiful when it comes to
theories trying to explain consumer perception of payments methods from a more general
point of view. A comparison such as the one in this paper has not been a central part in
previous studies.

The chosen research qualities are clear and concise, but at the same time they are not
limiting the study by placing it in too narrow a frame, having said that, they also give the
authors the opportunity to make a valuable contribution to knowledge.

Cashless society

A Cashless society describes an economic state Where financial transaction are not
conducted with money in the form of physical banknotes or coins, but rather Through
the transfer of digital information (usually an electronic representation of money )
between the transacting parties cashless societies have existed, based on barter and
other methods of exchange, and cashless transaction have also become possible using
digital currency such as bit coin,

Direct Benefits:

High maintenance costs: The cost of maintaining currency in India is enormous.

According to the Reserve Bank of India, the provisional estimates of the amount of
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currency in circulation (as of June 2010) stands at INR 8,64,333 Crores1 out of which only
5% of the currency is with the bank, implying that almost the entire volume of currency is
transacted every day. Over the period April 2006-June 2010, currency has shown a yearly
growth rate of 17%. It is estimated that, for 2009-10, RBI incurred an annual cost of INR
2,800 Crores to just print the currency notes.2 This is 0.4% of the total currency in
circulation. This cost does not include the cost of storage, transportation, security,
detection of counterfeits etc. To the printing cost, if we were to add the cost of storage
and maintaining these currencies through ATMs alone, the cost of printing and
distributing cash constitutes about 0.2% of India’s GDP. Given the growth rate in the
volume of currency, the cost of printing and disbursing will soon become enormous. In
the face of this, a moderate growth of cashless transactions by 5% a year will save more
than Rs 500 Crores annually. Therefore, there is a direct benefit (in terms of cost savings)
of moving towards cashless transactions in India. However, it is the indirect benefits that
are perhaps much more important for India, especially given its objective of inclusive
growth.

Indirect Benefits:

There are three distinct yet important indirect benefits from promoting cashless
transactions in India. These are:

It will promote financial inclusion;

It will keep records of financial transactions;
It will lower transaction costs involving any two parties engaged in a financial
transaction.

2
Ashish Das, and Rakhi Agarwal (2010), “Cashless Payment System in India- A Roadmap”, Technical report, IIT Bombay,
http://dspace.library.iitb.ac.in/jspui/handle/10054/1732

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However:

This Airticle discussion and focuses on the term “cashless society” In the sense of a
move towards, and implications of, society where cash is replaced by its digital equivalent
– in other words legal tender currency exists, is recorded , and is exchange only in
electronic digital form.

1.2 Concept

Such a concept has been discussed widely, particular because the word is experiencing a
rapid and increasing a rapid and increasing use of digital methods of recording managing
and exchanging money in commerce investment and daily life in many parts of the world ,
and transaction which would historically have been undertaken with cash are how
undertaken electronically some countries how set limits on transactions and transaction
values for which non-electronic payment may be legally used.

The trend towards use of non-cash transactions and settlement began in daily life during
the 1990s when electronically banking become popular by the 2010s digital payment
methods were widespread in many countries with examples including intermediaries
such as PayPal, digital wallet systems operated by companies like Apple. Contactless and
NFC payments by electronic card or Smartphone, and electronic bills and banking all in
wide-speed use. By the 2010s cash had become actively Dis- favoured in some kinds of
transactions which would historically have been very ordinary to pay with physical tender,
and lager cash amounts were in some situations treated with suspictious. Due to its
versatility and ease of use in money laundering and Givancing of terrorism, and actively
prohibited by some suppliers and Retailers,to the point of coining the expression of “warn
on cash” by 2016 in the ok it is now reported that in 7 people no longer carries or use
cash.

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It has also been described as a highly Controleversial and at times a “sinister” or “creepy “
move .since such have would be both potentially useful and potentially socially dangerous
with widespread implications for society. It has potential to be very helpful for central
governance and economics in the context of global negative inflation and quantitative
easing. And central control of the money supply. However a less of cash also transfers
complete control of transactions, interest, and Individual use of money, and information
about these, to the National state and their party provides ,give the individual cannot avoid
their money being held in an external system capable of regulation and control. Many
countries have Regulations , Restricted, or banned private digital currencies. Such as bit
coin. While helpful to the global economy and to the fight against crime and terrorism.
Many concern have been raised over “dangerous” unintended consequences, it would
mean that negative interest rates can be fully enforced, and money could be controlled in
great detail. For example, some kinds of money might be set to expire and be worthless if
not specific.

DENNION WEB:

18 Nov, 2016,reinin the Black economy in the country and to eliminated black money
Demonetization process has been implemented. Almost 86 percent of the total currency
in the economy currency notes of Rs 500 and 1000, which was has been outlawed , now
the government is trying to move the economy towards a cashless transactions, digital
transactions is to be Preffered. Know what’s the difference between cash economy and
cashless economy:

Cash transaction:

1. Buying or selling is the oldest methods of Any cash transaction ,18 Lakh Crore
currency in the economy was before the start process of Demonetizations about trillion
over the currency in the black economy is estimated to be official.

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2. The use of cash transactions to easily thickest Demonetizations (500-1000-2000) proves
most helpful. The biggest advantage to Through cash transaction is that the government
can be received from the or according to low and also from tax Payble or any transactions
can be avoided.

3. Cash transaction very easy way. The only currency in Exchange for any shopping needs
it is Believed that a mere cash transactions easier because of the currency. Exchange
Transactions is considered Complete .The only currency in the medium buyer and the
seller of the product must be just.

CASHLESS TRANSACTION:

Cashless transactions is increasing popular medium in the era of Digitalization. Through

this purchase or to sale the bank to resort to both the buyer and the seller is Required.
Through your bank with the reserve bank and the government, the tax department has an
important role.

1. For cashless transactions is resorted to plastic money or credit and Debit. For his and is
to open a bank account. In addition, the bank is in the range of check and draft Cashless
transactions, digital wallet, mobile banking, NEFT and RTGS cashless transactions also
are increasing popular ways.

2. Not simply as a cash transactions in cash less transactions observed . but in term of
security is much better than cash to give and take. Through the eyes of the tax department
of the bank and the government are each large transactions. Full details of the big
transactions as well as little transactions is in record.

Cash VS Cashless Transactions

1. During the past five years the Quantity has been rise in mobile banking 1000 times.

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2. Cashless transactions of NEFT medium base increased 20 times in the last five years.

3. RTGS and check banking payment just doubled during the last five years.

4. During the last five years there has been a decline in net banking systems Through three
quarter payment was through check.

However:

It is extremely important that banking in the country to be more more and more of the
country’s populations is not only banking but also the priority of bringing to be able to
buy an sell through.

Three types of cashless transactions:

With limited cash in hand and indefinite crunch in sight, most people are rushing to
cashless transactions “ Digital transactions bring in better transparency & calability and
Curretablity. The Newmove will Compelementry. money merchants to accept digital
money” says AB hay Doghi, senior 5-PS head, digital services platform Bussiness,
FLYTXT.

The RBI classifies every mode of cashless fund transfer or transaction using card or
mobile phones as ‘prepaid payment instruments’ those can be issued a smart card, net
wallets, mobile accounts wallets or paper vouchers these are classified into three types.

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Closed: issued by and entity for purchasing good and services only from it, these don’t
allow cash withdrawal or redemption. OLA money is one such closed wallet.

Semiclosed : these are used to buy goods and services including financial services from
merchants that have a specific contract with the issuer, these too don’t allow cash
Withdraw or redemption and include wall as offered by service provides like Paytm and
state bank buddy.

Open : these can be used to buy goods and services including fund transfers at merchant
locations, and also permit cash Withdraw at ATMs. all visa and master card card full

into this category.

Cashless modes:

Mobile wallets -This is basically a virtual Wallet Available on your mobile phone.
You cash share cash on the mobile to make on live or Offline payments. Varrious services
provides offer those wallets via mobile apps, which you need to Download on the phone,
you can transfers to money into those wallets online using credit/debit. You can use those

to pay fees. Bills and make online purchases.

Plastic money – This includes credit, debit and prepaid cards. The latter can be issued
by bank or non- banks and can be physical or virtual theses can be bought and recharged
online via net banking and can be used to make online or point- of- sale purchases. Eve an

given as gift cards.

Net banking - This does not involve any wallet and is simply a method of online
transfer of funds your bank accounts to another bank account, credit card, or a their party.
You can do it through a computer or mobile phone long in to your bank account on the

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net and transfer money via national electronic fund transfer (NEFT) real time Groses
settlement (RTGS) or immediate payment service (IMPS) all of which one at uninominal
cost ranging from Rs 5-55.

India is going to slowly cashless system

There is evidence to believe that cash is slowly going away. The year of 2016 marked yet
another decrease in the amount of bank notes and coins in circulations world-wide and
especially in well-developed countries such as Denmark and Sweden,

However, the popularity of electronic money transfer Systems (EMTS) is not the same in
all countries, There are societies which find it hard to embrace the new ways of Payment
and continue to resort to cash for the most part of their day-to-day transactions.

The purpose of this thesis/project is to investigate consumer attitudes towards both cash
and cashless payments in India (a country where the use of EMTS is well diff. used and
by a country where cash is still the preferred payments method). By doing so, the authors
would like to identify what the main challenges of adopting the alternative payments
methods among India consumers are, like wise ; one of the majors objectives of this work
is to compare how individual perceptions and social demographics influence the choice of
payments methods with a central point on outlining the differences and similarities
between the two countries.

Furthermore,

The author’s would like to provide suggestions on how to tackle the “cash
issue” present in such societies as the India by gaining a deeper understanding of those
consumers attitudes that could potentially act as challenges to the wider adoptions of
electronic payment Methods, cash/cashless system, an examination of all applicable
technological, security and privacy and Ethical concern {including those related to the

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black economy sector} and their own implications for the successful implementations of
EMTS is also to take place.

This Project drawn inspirations from current trends related to the use of cash and
electronic money. Topics which are frequently discussed in the media and which are often
times used to make speculations for the future of the so-called “cashless society”.

The main pursuit of the authors is to review the sensibility of these claims by investigating
to what and extent the two countries of interest fare on transtioning from cash-based to

alternative from of payments.

1.3 Problem formulation

This paper aims to examine the differences in consumer’s attitudes towards cash and
cashless payments methods by focusing on comparing how individual perceptions and
socio- demographic characteristics vary between two countries which have attained a
Different degree of Digitalization. To be more precise, the following research questions
have been formulated.

Need of the study:

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  How do consumers general attitudes on cash and cashless electronic payments
systems very across the Hardwar?

 How do consumer’s perceptions of different factors influence their choice of

payments methods (And how do those different between the cash/cashless
Hardwar area?

 What are the implications of social demographics for the choice of payment
methods (And how do those Difference between the Area of Hardwar).

A Cashless future is the real goal of India’s Demonetizations move :

This is a cross –cultural comparative study based on mixed methods research. The authors
follow the principles of the Paragramatic paradigm, which is concerned with the practical
rather than the theoretical consideration behind the different methods used in the study.
The paper presents a summarized overview of relevant literature on the subject and uses a
qualitative study of its own as a starting point in the research carried out by the authors.

The findings of this part are then used for a more through quantitative Investigation of the
specified problem area further details on various methodological considerations can be
found in the sections. Where all of the proceducers used by the creators of this work are
given a more comparhensive destription.

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 Chapter:-2
Literature review

REVIEW OF LITERATURE:

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The “cashless society” is becoming and increasingly Popular Matter of discussion in the
Media. In fact, it has been a topic of frequent database in society for several decades.

Many empirical studies have been conducted on the subject of ‘Plastic Money’
in India and abroad. The major emphasis of research has been on various issues like
frauds, security, usage pattern, new method of e-payment, etc.
The previous work done on plastic money needs perusal. It has been reviewed to
indicate in a general way the type of work done on this subject in India. It is expected
that the critical examination of the studies would give focus to our problem and help to
indicate the areas which have remained neglected at the hands of the researchers. From
the review of literature, it was found that hardly there was a study which examined the
perception of both users and traders on the usage of plastic money. Also, many studies
concentrated on individual cards, for instance, credit or debit card and neglected the
joint effect and new innovative cards like smart card, charge card and check card. In
this study, an attempt is made to include all types of cards in the analysis.

Steindl (2000), “Credit cards, Economization of money, and Interest Rates.”

shows the effect of interest rates on use of credit cards, which are increasingly used to
finance consumption. The corollary is a reduction in money demand, which reduces the
interest rates. Greater credit card usage increases the demand for credit, which raises the
interest rate. Three models employing a credit market are used to resolve the problem.
The principal result is that each establishes that the interest rate must rise. An additional
implication is the counterintuitive result that credit does not simply substitute for money
in financing expenditure; rather increased credit card use must result in increased
consumption expenditure.

Warwick and Mansfield (2000), “Credit card consumer: college students

knowledge and attitude”. Given the proliferation of the credit card industry in today’s
US household, and the aggressive promotional tactics employed to get college students
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to sign on as customers. This exploratory study takes a look at the credit card activity of
college students at Midwestern campus. The majority of students surveyed did not
report knowledge of their credit card interest rate. Students appear to have a realistic
attitude toward using credit cards, although not knowledgeable about the details of their
card. This study raise the question of whether universities and business schools are
doing a better job of preparing their students to be knowledgeable consumers in the
market place or not.

Leung and Lai (2001), “Improving the quality of the credit authorization
processes a quantitative approach”. This paper proposes that the quality of a company’s
authorization system should be measured by two major considerations. First, the system
should enhance quality of customers service by reducing the waiting time at the point of
sale. Second, it should reduce the risk of accepting transactions of bad credit. In this
paper, a major credit card company is used to demonstrate how the credit authorization
process can be improved using a quantitative approach. Opportunities for quality
improvement were first identified though brainstorming sessions with top management,
by using quality improvement tools. A queuing model was then used to redesign the
authorization process. Finally, simulation model was used to test and evaluate the new
process design. As a result of these improvements, it was determined that more than
US$2.5 million were saved annually and authorization efficiency was improved by
more than 40 percent.
Azhagaiah (2002), “Credit creation through plastic money.” This paper focuses
the issues of credit cards usage among consumers. It exhibits the recent development,
evaluate the present status ad assesses the future of the consumer indebtedness by credit
card debt. It also discusses the financial position of the banking sector in India.
Strategies used by the banks to meet competition in credit/debit cards are also
discussed. Credit to individuals and house holds has a vital role to play to create bank’s
credit and money supply. Author point out that the role of credit cards in the money

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market, in the years to come, will be very bright. There is no doubt, the banks which
concentrate more on credit cards will get more benefits by means of credit creation.

Lee, Jinkook (2002), “Consumers Use of Credit Cards: Store Credit Card usage
as an Alternative Payment and Financing Medium.” asserts consumers use of store issued
credit cards with particular attention to their function as an alternative payment
and financing medium. Using 1998 survey of consumer finances data, the researchers
found that credit availability through bank cards is negatively correlated with consumer
use of store cards as a financing medium, suggesting the role of store cards as a Review of
supplementary credit line. A negative relationship is also found to exist between
consumer’s bankcard usage and their use of store cards for a transaction purpose,
indicating that store cards function as a substitute payment medium. Consumer’s usage
of store cards varies according to function and is related to number of variables
including the use of bank cards, credit history, and attitude towards credit, income,
education and ethnicity.
Chakravorti (2003), “Theory of credit card networks: A survey of the
literature” shows that credit card provide benefits to customers and merchants not
provided by other payment instruments as evidenced by their explosive growth in the
number and value of transactions over the last 20 years. Recently, credit card networks
have come under scrutiny from regulators and antitrust authorities around the world.
The cost and benefits of credit cards to network participants are discussed. Focusing on
interrelated bilateral transactions several theoretical models, have been constructed to
study the implications of several business practices of credit cards networks.
Gupta (2003) “Legal and regulatory framework of credit cards” asserts that the
regulations of credit card business in India is diffused and need to be streamlined.
Whereas in developed countries the law on credit card business in comprehensive and
straight forward, its Indian version requires a structural change. Hence, there is a need
to explore that various legislative premises of the inferior and unclear Indian version for

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protection of interest of cardholders and healthy growth of the industry.

Saha (2003), “The booming credit card business of Indian banker.” In this study
analysis has been done of the credit card business in India. Article is both from the
banker point of view and from the users point of view. It is estimated that the credit card
volume is increasing around 15% p.a. on average for last 10 years and volume of
transaction increased by 20% on an average in last 10 years in India. Various hypothesis
and objectives are set to find out which bank offer varieties of services to consumer in
relation to credit card. A comparative analysis is made for all the credit cards. In
general, most of the credit card is doing very well and the competition is cut throat.
Different factors such as income level, fees customers’ service network, add on card
facility, revolving credit facility, insurance facilities, cash withdrawal charges, lost card
liabilities etc. taken into account for selecting the best credit card provider in country.
The study also finds that city bank is the best card which provides all the facilities at the
minimum charges.

Bandy opadhyay (2004) in his article “Credit cards look for an Ace” put the
light on various issues like, major card players are issuing cards without much checking
credentials. It adds to non performing assets [NPA] levels in its portfolio but overall,
about 0.6 percent of personal consumption expenditure in India is through credit cards.
He suggested that (I) the increasing card use could be by making all utility payments
through cards by installing more electronic draft capture (ii) the government can do by
waiving the tax on credit cards which is a big disincentive for card users (iii) to bring
down the default rate, bank must set up credit bureau. This will enable banks to detect
the first sign of default in advance and sound a red alert so that prospective defaulters
can be weeded out

Bhargava (2004) title “Debit cards: A new generation plastic money” analyses

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that debit cards are fast catching up with the customers. A combination of factors like
ease of availability, debit-averse profile of customer and zero interest rates are
propelling the usage of Debit Cards. The study emphasizes to increase the usage of
these cards, bank will need to improve infrastructure and continues to focus an
increasing installations of point of sale [POS] in smaller cities and on the locations
which are frequently used by cardholders, and to develop new marketing programmers
that educate customers on the benefits of replacing cash with plastic.

Braunsberger (2004), “The effectiveness of credit–card regulations for

vulnerable consumers”. The study investigates how vulnerable consumers (i.e. College
students) might respond to the revised credit card disclosure requirement (i.e.
amendments in Truth in Lending Act) and investigates credit card knowledge of college
students. The study examine external validity issues, that is, whether urban college
students are more knowledgeable about credit cards than rural students, and whether
adult populations are more knowledge than student populations. This study further
investigates the relationship among objective and subjective knowledge and product
usage. The result shows that consumer in general are not very knowledgeable about
Review of Literature.
credit cards. In order to avoid government regulation of the industry, it is recommended
that credit card issuers become involved in educating consumers.
Cunningham (2004) “College Student credit card usage and the Need for on
campus financial counseling. And planning services”. The purpose of this study was to
examine the use of credit cards among college students and the need for on-campus
financial counseling and planning service. The research objective was two fold: (a) to
determine if college students are responsible with their credit cards and (b) to evaluate
the need for on-campus financial counseling. Participants in the survey (N=110)
completed a survey consisting of various question about students’ use of credit cards.
Results showed that while a majority of the students who completed the survey were

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very responsible with their credit cards, there as a group (composed of study) who were
having significant credit problems. The paper concludes with suggestion regarding on
campus financial counseling services.
Easwar and Kumar (2004) asserts in the studies titled,” Credit cards: on agrowth
trajectory” that the perception of owning credit card has changed and they areviewed as
being convenient substitute to carrying cash and also availing credit for shortperiod. But
in the context of home country, India ranks at the bottom in terms of usageof credit cards,
when compared to China, Taiwan and Malaysia.
Goyal 2004“Role of supplementary services in the purchase of credit cardservices in
India” describes that service products being intangible and experiential innature are
different to evaluate prior to purchase and consumption. Consumers perceive risk while
purchasing services and rely on various information sources to make apurchase decision.
In services, personal sources of information and considered more than non personal
sources of information. The present study focuses on understandingthe significance of
supplementary services as non personal source of information ofconsumers for
prepurchase evaluation of credit card services. In other words, whetherinformation
regarding supplementary services can help consumers make pre-purchase evaluation of
credit cards. In addition to pre-purchase evaluation, the impact of supplementary services
is studied towards post-purchase evaluation credit card services. Supplementary services
being a part of full service product offer by marketers can be.Utilized as a beneficial tool
to create interest and developing awareness among consumers.
Hogarth and Hilgert (2004) “Consumers resolution of credit card problems and
exit behaviors.” Using data from the survey of consumers, this study focuses on
consumer’s resolution efforts with credit card problems and the likelihood of “exiting”-
that is, discontinuing the use of a given credit card or of the financial institutions
associated with the card. Among all households with a problem, nearly two-thirds (63
percent) were able to resolve their problem, while over half (55 percent) exited. Exist
was associated with marital status, race, how dissatisfied the consumer was, the number

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of problem related to credit cards, and attribution. Holding all the else constant,consumers
who were likely to resolve their problem were only half as likely to exist.Thus, credit card
companies need to carefully and quickly address their customerproblems and resolve their
complaints.
Humphrey (2004) “Replacement of cash by cards in US consumer payments”
Authors uses over the past 25 years time series data. The results shows that the share of
cash in consumer payments appears to have fallen from 0.31 in 1974 to 0.20 in 2000,
cheques replaced cash during the 1970, credit cards replaced some cheques during the
1980, while debit cards replaced both cash and cheques in the 1990s. Author feels even
though, cash is not projected to go to zero anytime.
Prasad (2004), “Product innovation-A suggestion from a Reader: KCC vs.ATM” article
examined the utility of Kissan credit card from the point of view of both the Kisan Credit
Card (KCC) holders and commercial banks. It is an innovative product designed by the
government of India (GOI) in consultation with RBI/NABARD. The facility of issuance
of “cheque Books” to KCC borrowers is one of the important improvement. But this
product needs further improvements by making it a technology driven to extension of
Automated Teller Machine (ATM) to agriculturists in rural and semi-urban areas. “KCC
ATM CARD” provides benefits to agriculturists as well as to commercial banks.
Agriculturists gets instant cash for agriculture inputs such as fertilizers, seeds, pesticides
and overdraft facility to current account holder holding “KCC ATM CARD” which
involves no cost and boosting self–esteem among farmers. On the other hand, by
providing the ATM facility, the commercial banks can reduce fixed cost per transaction.
Author feels that by extending technology driven products
will boost the image of commercial banks and helps to enlarge the base of his value
agriculture advance which could attract the more farmers to commercial banks.
Swan (2004) made a survey on credit cards,” A credit card: A competitive
market”. It observed that with the more entrants in the field of credit cards, major players
are trying to gain a market share with aggressive promotional strategies and additional

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value added services. Some banks though offer international level of services and credit
support to card holders but had failed to make an impression in the market due to lack of
awareness and low key advertising. It also observed that in spite of aggressive effort of the
banks, vast majority of the Indian population is yet to come to grips with credit cards.
Jagdeesh (2005), “Credit card fraud: causes and cures from professional’s perspective.”
Put a light on credit card fraud which is increasing worldwide. The culprit is not only the
outsiders but insider fraudsters who cheat their organization to make quick buck. Bank
credit card issuers lose about $1.5 to $ 2 billion every year because of fraud. The VISA
and the Master Card, the two largest credit card issuers lose most. Major credit card frauds
like unauthorized use of credit cards, on line frauds, shave and paste of card,
counterfeiting. mail order fraud are the techniques used by the fraudster. The author also
discusses the tips for prevention of frauds like using smart cards, computer edits, PIN
numbers, and suggests that it is in their own interest that the cardholders should keep their
cards safely and use the cards wisely to protect themselves from frauds.
Johnson (2005), “Recent development in credit card market and the financial obligation
ratio” exhibits that over the past fifteen years, U.S. household in the aggregates have
devoted an increasing share of their after tax income to the payment of financial
obligations. Much of the increase is attributable to a rise in the level of credit card debt,
which has raised the share of households’ aggregate after tax income that is devoted to
credit card payments. This article argues that three important developments in the credit
card market over the period account for most of the rise in credit card payments relative to
income and played a strong role in the rise of the total financial obligation ratio (FOR).
First, improvements in credit scoring technology and the advent of risk based pricing of
credit card debt have increased the share of house-holds particularly lower income house
holds with a credit cards. Second, in the 1990’s , credit card interest rate begin to vary
with changes in broader market interest rates, which in turn led to an especially
pronounced decline in credit card interest rates turned sharply lower; the decline in credit

Page 24 of 76
card rates raised the demand for credit card debt. Finally, household have increased their
use of credit card as a convenient means of paying for daily purchases.
Park and Burns (2005, “Fashion orientation credit card use, and compulsive buying.”
The study was to identify the direct impact of fashion-related factors on compulsive
buying and the indirect impact of fashion-related factors on compulsive buying through
credit card use. It was found credit card usage to be the most influential factor followed by
expenditure on fashion goods. Research shows that fashion orientated consumers are
heavy credit card users. Consumers who tend to have fashion leadership and know the
importance of being well dressed might use their credit card more while those who have
anti–fashion attitude are least likely to use their credit cards. The authors observe that the
credit card is the most significant factor in encouraging compulsive buying and suggest
that since other antecedents of such behavior are hard to pin down, regulatory action
should focus on the control of credit.
Pinto and Beth (2005), “Information learned form Socialization Agents: Is Relationship
to Credit Card Use.” Shows that credit card use among college students has reached at
unprecedented level. As a result, there is a movement to educate college students for
usage credit card in a better way. This research examines the credit information provided
by four socialization agents (parents, peers media and schools). In addition, it assesses the
relationship between these socialization agents and the credit usage behaviour of college
students. Using paired sample ‘t’ tests, the results indicate that the amount of credit
information given by parents is significantly greater than the information from the other
three sources (Schools, Peers and media). The more information provided by parents, the
lower the outstanding balance carried by college students on their credit cards. Media
sources, educational sources and peer sources of information showed no significant
relationship with credit use.
Sant (2005), “Credit cards emerging Trends and Prospects” shows
benefits,growth/potential growth, usage pattern, technological changes, delinquency rates,
andfraud settlement, by the credit card companies. Survey shows that spend per card in

Page 25 of 76
India are very low at around Rs. 20,000 per year against international average of around
$900 (i.e. about Rs. 40,000) per year per card. Demands have increased for higher quality
and level of services. Major card issuers in India, domestic and foreign, are currently busy
racking their brains in trying to protect their organizations from frauds.To overcome this
problem a new technology i.e. “Smart-Card” that allows for greatersecurity against fraud.
Authors feels that with the establishment of credit information bureau of India Ltd.
(C/B/L) customer had motivation to maintain good credit history and helps inlowering of
delinquency rates. Article also shows that credit card industry grows by 37% with ten
million cards in circulation.
Al-Alawi and Al-Amer (2006), “Young Generation Attitudes and Awareness Towards
the implementation of Smart Card in Bahrain: an exploratory study. The study puts a light
on latest advancement and innovations in the world of information and communication
technology by the way of smart card. A smart card resembles in size and shape to a
normal credit card or bank ATM card, with a microprocessor chip implanted into card.
These cards are used not just as identity cards, but hold a relatively huge amount of
editable information including the cardholder’s bank data, e-purse, finger print, health
record, blood group, traffic and license details and other vitalinformation. Study present a
general overview history, features application and
introduction of smartcards in the kingdom of Bahrain. A total of 513 questionnaires
were distributed to the students of the University of Bahrain. The questions asked
included question to check the acceptance of the people to replace their current cards
with a smart card and their awareness of the new National Smartcards in Bahrain. It also
evaluates the effects taken by the government to create awareness among the public
about the usage and features of the smart cards.
Worthington (2007) “The adoption and usage of credit cards by urban-affluent
consumers in China”. The purpose of this paper was to present exploratory research into
the holding and usage of credit cards by a distinct segment of the Chinese population,
who were “early adopters” of this product. Primary data was collected for taking sample

Page 26 of 76
of the urban affluent population in china to gauge preferences and attitudes towards the
use of credit cards. The sample was drawn from a narrower base than the actual target
population of urban-affluent market but an available and valid respondent set, which
offers insights into the “early adopters” of the credit card product in china. It was found,
that the respondent were comfortable with the holding and use of credit cards
particularly recognized their value for spending on travel and entertainment. The
research also identified purchase trigger points, which indicated that the use of credit
cards for purchases above certain values, is already prevalent with the sample of urban
– affluent Chinese consumers.
Devlin (2007) “An Analysis of main and subsidiary credit card holding and
spending.” This study seeks to examine why most multiple credit cardholders have a
“main” card (i.e. a card used more often than others) and “subsidiary” cards (i.e. cards
used less often or only in an emergency) and the spending pattern associated with main
and subsidiary cards. This study is a qualitative in nature, using a survey which
contained open-ended questions to acquire data. Response were subject to content
analysis to categories the reasons given for having a main and subsidiary card. Results
show that 85 per cent of the 141 respondents indicated that they had a main card and the
most frequently quoted reason for having such a card was the superior discount and
promotions which were offered by the card issuer. Not surprisingly, main cards were
used for the broadest range of transactions while subsidiary cards were used for a more
restricted range of transactions, a majority saying that their subsidiary cards were held
for “stand by purpose”. The results suggests that managers who market credit cards
should aim to ensure that, in all times, the discount they offer, the promotions they
arrange and their loyalty schemes are superior to those offered by competitors. By
meeting these aims, higher number of consumers, who are multiple cardholders, are
likely to use their card as a main card, thereby generating more income for their credit
card issuer.
Amin (2008), “Factors affecting the intentions of customers in Malaysia to use

Page 27 of 76
mobile phone credit cards” shows that mobile phones have provided an opportunity for
banking institutions to introduce new services to the public. The latest service, which is
now available in Malaysian banking institutions, is the mobile phone credit card. The
purpose of this paper is to provide a preliminary investigation of the factors that
determine whether Malaysia’s bank customers will use the new mobile phone credit
card technology. Paper extends the applicability of the technology acceptance model
(TAM) to mobile phone credit cards and includes “Perceived credibility (PC)”, the
“amount of information about mobile phone credit cards (AIMCs)” and “perceived
expressiveness (PE)”, in addition to “Perceived usefulness (PU)” and “Perceived ease of
use (PEOU)”. The result indicate that PU, PEOU, PC and the amount of information
contained on mobile phone credit cards are important determinants to predicting the
intentions of Malaysian customers to use mobile phone credit cards. However, PE is not
an important determinant in predicting the intentions of Malaysian customers to use
mobile phone credit cards.
Gan (2008) “Singapore credit cardholders: ownership, usage patterns and
perceptions.” The purpose of this study is to analyse Singapore’s diverse cardholders in
search of variations among demographic groups, credit card profiles, and their
perceptions with regard to credit card ownership and use. It then aims to discuss
possible reasons governing Singaporeans’ credit card ownership and use. In this study,
decision trees were constructed using chi-square technique to examine the association
between number of credit cards and the demographic characteristics, perceptions and
other credit card-related variables. The number of credit cards was found to be
significantly influenced by income and gender as well as perceptions that include
“credit cards leads to over spending”, “Saving as payment source”, “unreasonable
interest rates”, “credit card as status symbol.” The number of credit cards was also
affected by credit-card-related variables such as missing payments sometimes,
frequency of use, entertainment expenditures, and patrol purchase. This research
provides an in-depth understanding of Singaporean multiple cardholders, thus it is

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useful in designing marketing strategies for card-issuers as well as anti-debit strategies
for policy-makers in Singapore.
Al-Laham (2009) in his research “Development of Electronic Money and its Impact on
the Central Bank Role and Monetary policy” asserts that, in recent years there has been
considerable interest in the development of electronic money schemes. Electronic money
has the potential to take over from cash as the primary means of making small-value
payments and could make such transactions easier and cheaper for both consumers and
merchants. Electronic money is a record of the funds or “value” available to a consumer
stored on an electronic device in her possession, either on aprepaid card or on a personal
computer for use over a computer network such as the
internet. This paper argues that electronic money, as a network goods, could become an
important form of currency in the future. Such a development would influence the
effectiveness and implementation of monetary policy. Author feels that, if an increased
use of e-money substantially limits demand for central bank reserves, it would require
changes in the operational target of the central bank and a closer coordination of
monetary and fiscal polices

Eisenstein (2011)/ Rogoff (2014)/lliev(2016) One of the key points that the proponents
of a society where there is no cash in circulation like to maintain is that anonymity would
decrease and along with it a decline in illegal economic activities would follow. (Rogoff,
2014) This is especially the case when the use of electronic transactions is officially
endorsed by authorities such as the ECB with similar purposes in mind. (Iliev, 2016) It is
worth to note that this development also raises the danger of governments being able to
exercise “totalitarian-like” control over their own citizens. (Eisenstein, 2011).

McArdle (2016)/ Bolton(2015)/Edwards (2015)

Other major factors which contribute to the ever more extensive use of electronic

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transfers include the increased security of storing money in a bank account and of
transferring these funds to other accounts electronically and even the superior convenience
of paying with e.g. a bank card as opposed to paying with cash. (McArdle, 2016) In fact,
some assert that cash is so rarely used in some places like for instance Scandinavia that
these countries are practically on the verge of going full-blown “cashless”. (Bolton, 2015)
(Edwards, 2015).

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 Chapter-3
Research Methodology
&
Objectives

Data collection
A research process consists of steps that guide the project from its conception through
the final analysis, recommendation and ultimate action. The research process provides a

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systematic planned approach to the research project and ensures that all aspect of the
there search project are consistent with each other.

INTRODUCTION
This chapter aims to understand the research methodology establishing a framework of
evaluation and revaluation of secondary research. The techniques and concepts have
been used during secondary research in order to arrive at any conclusion is also deal with
and leads to a logical abridgment toward the analysis and results.

OBJECTIVE
1. How many customers use cashless System?

2. Customers awareness of cashless system in Hardwar ?

3. How do consumers general attitudes on cash and cashless electronic payments systems
very across the Hardwar?

4. How do consumer’s perceptions of different factors influence their choice of payments

methods (And how do those different between the cash/cashless Hardwar area?

5. What are the implications of social demographics for the choice of payment methods
(And how do those difference between the area Hardwar ).

1.1 – Research Design: This study falls under descriptive research and hence
descriptive research design was followed.

1.2 – Methods of Data collection:- The present study is based on Primary data,
Questionnaire and Secondary data was the main tool of collecting the primary data
and secondary data. The Questionnaire was designed in a systematic way of covering
adequate and relevant almost all aspects of the study. The data collected from the primary
sources were arranged sequentially and tabulation in a systematic manner.

1.3- Sampling Method: Non probability convenience sampling techiniques was used to
select a sample of 50 customer using cash/cashless system in modes of payment of
Hardwar district.

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Sources of data
1. SECONDARY DATA:- Information that already exists somewhere, having been
collected for another purpose. Sources include reports, research paper, books, magazine,
newspaper and internet.

This study is a multi- phase, multi- method field based naturalistic enquiry. The study
centres on two takes.

One is to ascertain perceptions of cash and cashless payments modes and to examine the
relationship between payment mode perceptions and payment mode choice selection of
customers, the other is to examine the relationship between payment modes and actual
consumers purchases behavior. To manage those tasks, the study will be conducted in

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 Chapter:-4
DATA ANALYSIS AND
DATA
INTERPRETATION

Question on Survey : Customers awareness towards cashless system: OF

Hardwar

Gender No. of
responders
Male 33
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 Female 15
Other 2

Responders
Responders
33

15

Male Female Other

Interpretation: It is interpreted from the above graph that shows the graph 66% Male
responders, 30% female responders and 4% others responders are respondence in cashless
system in hardwar.
Question 1: Are you aware regarding the functionality of e-wallets systems in cashless
transaction ?

Particulars No. of responders

Fully aware 30
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 Partly awareness 19
Not aware 1
Total 50

Chart Title

30

19

2 3
1 1

Fully aware partially awareness Not awraeness

Interpretation: It is interpreted from the above graph that shows the graph fully aware
30 responders, Partly aware 19 responders and 1 responder not responded.

Question 2: where did U get information about cashless transactions ?

Particulars No. of responders

Social Media 15
Friends 20

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 Magazine/Television 15
Total 50

25

20
20

15 15
15

10

5
3
2
1
0
Social media Friends Magazine/Television

Interpretation: It is interpreted from the above graph that shows the graph 15 responders
are responded in social Media, 20 responders are responded in friends and 15 responders
are responded in Magazine about the information of cash lees transactions.

Question 3: Do you use cashless over there e- wallets, e-payments of modes of

payments.

Particulars No. of responders

Time saving 30
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 Ease of use 18
Security 2
Total 50

Responders
Responders

50

30

18

Time saving Ease of using Security Total

Interpretation: It is interpreted from the above graph that shows 30 responder

are responded in time saving favour, 18 responder are responded Ease of using
and 2 responder are responded in Security favoured.

Question 4: Do you use e-wallet for cashless financial transactions?

Perception Perception
Gender
In No. In %
Yes 18 36%
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Both M/f
No 32 64%
Both M/f
ToTal 50 100%

Chart Title
60

50

40

Axis Title 30

20

10

0
Gender Yes Both M/f No Both M/f ToTal

Interpretation: It is interpreted from the above graph that shows the graph 36%
responders are responded are aware use for financial e-wallet cashless transaction and
64% responders are responded are aware use for financial e-wallet cashless transaction.

Question 5: Which device do you use for making the payment cashless transaction
system.

Perception No. of consumer

Smartphone 12

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 Computer 24
Both 14

Total 50

50
50
45
40
35
30
24
25
20
14
15 12

10
5 0 0 0 0
0
1 2 3 4

Perception No. of consumer

Interpretation: It is interpreted from the above graph that shows the graph 12 Male and 8
female responder are responded are aware use for Smartphone and 24 Male and 22 female
responders are responded are aware use for computer and 14 male and 20 female
responder are responded are aware use for both elements use for cashless making a for
payment.

Question 6: which e-wallet do you Prefer most of the time?

Paytm 20

Freecharge 12

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Mobikwik 15

Google wallet 3

Total 50

Chart Title
50
45
40
35
30
25
Axis Title 20
15
10
5
0
Paytm
Freecharge
Mobikwik
Google wallet
total

Interpretation: It is interpreted from the above graph that shows the graph 20 people use
paytm to cashless transaction, 12 people use freecharge to cashless transaction, 15 people
use Mobikwik to cashless transaction, and 3 people use google wallet to aware the
cashless transaction.

Question 7: How do you consider e-wallet against other sort of payment methods like cash
system?

Perception Awareness

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 Alternate choice 12

Substitute 31

Supportive instrument 7

Total 50

Awareness

50
45
40
35
30
Axis Title 25
20
15
10
5
0
Alternate choice Substitute Supportive instrument Total

Interpretation: It is interpreted from the above graph that shows the graph 12 people use
cashless system alternative choice, 31 people use cashless system substitute choice and 7
people use cashless system alternative choice aware and considered this system.

Question 8: What are your purpose of using E-Wallet.

Purpose Awareness

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 Money Transfer 21

Recharge 6

Utility & bill Payment 5

All of the above 18

Total 50

Awareness
Awareness
50

21
18

6 5

Money Transfer Recharge Utility & bill Payment All of the above Total

Interpretation: It is interpreted from the above graph that shows the graph 21 People using
the e-wallet money transfer ,6 people using the e-wallet recharge,5 people using the e-
wallet for utility& bill payment and 18 people using the e-wallet money transfer and
aware in cashless system.

Question 9: What you keep in mind when you use e-wallet?

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 Purpose Awareness

Available discount 21

Preiumum offers 6

Cash back 23

Total 50

50
50
45
40
35
30
23
25 21

20
15
10 6

5
0
Available discount Preiumum offers Cash back Total

Awareness

Interpretation : It is interpreted from the above graph that shows the graph 21 people
Available discount use of e-wallet ,6 people premium offers use of e-wallet and 23 people
use of e-wallet from cashless transaction from cash back sureitty after the cashless
transaction are failed .

Question 10: How Many times have you use the E-wallet for cashless transaction?

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 Male Only once 0-5times More than 10 No use

Female Only once 0-2 0-5 No use

No.of customers 1
30

25

20

Axis Title 15

10

Interpretation: It is interpreted from the above graph that shows the graph 0-5 Male ,0-2
female are responders use e-wallet cashless transaction, and more than 10 times and 0-5
are responders use e-wallet cashless transaction and no use 20 customers this system.

Question 11: How often do you use E-Wallet ?

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 Purpose Users

Daily 2

Weekly 23

Monthly 25

Total 50

Users

50
45
40
35
30
Axis Title 25
20
15
10
5
0
Daily Weekly Monthly Total

Interpretation: It is interpreted from the above graph that shows the graph 2 people use
daily purpose of e- wallet, 23 people use weekly purpose of e-wallet and25 people use
Monthly purpose of e-wallet for cashless transaction.

Question 12: How much money do you load in e-wallet on a Monthly basis?

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 Purpose Users

Less than 5000 12

5000-10000' 14

More than 100000 24

Total 50

Users

50
45
40
35
30
Axis Title 25
20
15
10
5
0
less than 5000 5000-10000' More than 100000 Total

Interpretation: It is interpreted from the above graph that shows the graph 12 people
loaded in money e-wallet cashless transaction, 14 people loaded in money e-wallet
cashless transaction and 24 people loaded in money e-wallet cashless transaction of
monthly basis .

Question13: How much money have you loaded in e-wallet till now?

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 loaded money customers

less than 5000 13

5000-10000' 25

More than 100000 12

Total 50

customers

50
45
40
35
30
Axis Title 25
20
15
10
5
0
less than 5000 5000-10000' More than 100000 Total

Interpretation: It is interpreted from the above graph that shows the 13 customers loaded
money till now e-wallet cashless transactions, 25 customers loaded money till now
cashless transaction and 12 customers more than 100000 load money e-wallet till now .

Question 14: How do you rate the e-wallet service that you have used?
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Customers Perception

Very satisfied 15

Satisfied 23

Neutral 6

Unsatisfied 6

Total 50

50
50
45
40
35
30
23
25
20 15
15
10 6 6

5
0
Very satisfied Satisfied Neutral Unsatisfied Total

Perception

Interpretation: It is interpreted from the above graph that shows the graph 15 customer
very satisfied for the service used, 23 customer satisfied for the use service,6 customer
Neutral for the use e-wallet system and 6 customer unsatisfied for the use of e-wallet
service cashless transaction.

Question 15: Would you want to continue using e-wallet?

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 Customers use

very likely 10

Likely 13

Neutral 7

Unlikely 12

very unlikely 8

Total 50

use
50
45
40
35
30
Axis Title 25
20
15
10
5
0
very likely likely Neutral Unlikely very unlikely Total

Interpretation: It is interpreted from the above graph that shows the graph 10 customers
very likely using e-wallet continue,13 customers likely using e-wallet continue,7
customers Neutral using e-wallet continue,12 customers unlikely using the favour of e-
wallet continue and 8 customer using e-wallet continue this cashless system.

Question 16: Are there any obstacles when you use e-wallet?

Page 50 of 76
 Customers Obstacles

Yes 27

No 23

Total 50

Obstacles

50
45
40
35
30
Axis Title
25
20
15
10
5
0
Yes No Total

Interpretation: It is interpreted from the above graph that shows the graph customer
perception using while e-wallet system 27 people say yes obstacles are facing cashless
transactions and 23 people customer perception using while e-wallet system people say
No obstacles are facing cashless transactions .

Question 17: What are the obstacles when you use the e-wallet?

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 Customers Obstacles

security of mobile payments 20

Too fine consumption to set up 12

Involves danger of losing money 8

Cannot be used for international transaction 10

Total 50

Obstacles
50
40
30
20
10
0

Axis Title

Interpretation: It is interpreted from the above graph that shows the graph obstacles while
using e-wallet and customers perception show the graph towards.

Question 18: Are e-wallet service useful mode of payment?

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 Customers Useful

Strongly Agree 38

Strongly disagree 12

Total 50

Useful

50
45
40
35
30
Axis Title
25
20
15
10
5
0
Strongly Agree Strongly disagree Total

Interpretation: It is interpreted from the above graph that shows the graph 38 customers
strongly agree to useful e-wallet service of mode of payment and 12 customers strongly
disagree to useful e-wallet service of mode of payment and its perception and awareness.

Question 19: Do you then e-wallet should be widely available in India?

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 Customers Perception

very likely 20

Neutral 6

Likely 18

Unlikely 6

Total 50

50
50
45
40
35
30
25 20
18
20
15
10 6 6

5
0
very likely Neutral Likely Unlikely Total

Perception

Interpretation: It is interpreted from the above that shows the graph 20 customer widely
very likely,6 customer widely neutral, 18 customer widely likely and 6 customer unlikely
and its perception.

Question 20 : Do you believe your transactions are secured?

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 Transaction Perception

strongly agree 33

strongly disagree 17

Total 50

Perception

50
45
40
35
30
Axis Title
25
20
15
10
5
0
strongly agree strongly disagree Total

Interpretation: It is interpreted from the above graph that shows the graph 33 people
strongly agree transaction are secured and 17 people strongly disagree transaction are
secured and its perception.

Question 21 : Does using e-wallet promotes cashless payment to the next level?

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 Promotes Perception

yes of course 40

No 10

Total 50

50

50
45 40

40
35
30
25
20
15 10

10
5
0
yes of course No Total

Perception

Interpretation: It is interpreted from the above graph that shows the 40 customer promotes
e-wallet to cashless system to next level and 10 customers promotes e-wallet to cashless
system to next level and its perception.

Question 22: Would you like to refer your friend to use e-wallet?

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 Refer customer perception

very likely 10

likely 30

Neutral 6

Unlikely 4

Total 50

customer perception
60

50

40

Axis Title 30

20

10

0
very likely likely Neutral Unlikely Total

Interpretation: It is interpreted from the above graph that shows the graph 10 customer
perception is very likely, 30 customer perception is likely,6 customer perception is
Neutral and 4 customers perception is Unlikely and customer like to refer your friend to
use e-wallet.

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 Chapter-4
Findings and
Conclusion

Findings

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 The findings can be drawn on the basis of data analysis as following :-
 The usage of no-frill cashless instrument debit cards should be encouraged. In
order to educate people on the advantages of debits cards over cash.RBI should
organize focused financial education campaigns among merchants and cardless.
 The government may also consider promoting card based cashless payments by
reducing VAT imposed on consume who pay through pay cards.
 Given the cost and risks involved in handling cash, bank, need to favdurably price
electronic products and a situation where electronic products are costlier than paper
products should not rise. Thus, to glide through from cash based to card based
products our analysis suggests the debit card payment.
 There is a need for RBI to subsidize switch charges, to promote cashless payments.
 From the initial set of responses of the survey, that is fairly representative of size
and sectoral composition, several important facts emerged.
 find a number of different “user profiles” when it comes to the use of cash and
cashless system in Hardwar and country.
 The path to cashless has three important and basic (MIN, henceforth) components –
mandatory, incentives and networks.
 The role of the Government is prominent in all the three cases. It can make certain
nature of payments to be made by cashless instruments mandatory.
 These can be easily achieved for instruments that involves paying directly to the
Government for certain goods and services (say Passport fees, tax payment,
payment to railways, PDS, State electricity Boards or to National airlines etc) or
where the Government pays (salaries, various schemes like MNREGS, other cash
transfer schemes). However, given that enforcing such mandatory requirements are
difficult for transactions that involve two private parties (say household and
retailers), an incentive scheme will work better. These incentives need to be given
to one party to carry the cashless transactions. Finally, for a cashless system to be a
long run equilibrium, a critical size of the network.

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  must be developed. The role of the Government along with RBI is most crucial
here. We summarize below, the current status and the possible interventions for
each retail consumption sector towards moving cashless. In table 7.2 we present the
roadmap for households while in table 7.3 we present the roadmap involving the
enterprises.
 It is important to note that the bottlenecks identified so far has two prominent
things. One is the lack of acceptability and the other is high transaction costs.
Therefore, our recommendations must keep these two facets and should be
consistent in removing at least one constraint for each consumption sector.
 it is worthwhile to note that, even if these two constraints were to be removed,
cashless transactions will not be automatic. For example, let us construct an
extreme scenario. Say, in city X, the Government decides to incentivize a group of
retail outlets to accept cashless payments as well as removes all transaction costs.
Even in this scenario, cashless transactions may not readily pick up as individuals
may not want to keep financial footprints of their transactions if done cashless. This
is primarily because, some amount of tax avoidance is possible if the transaction
has no footprints. Therefore, apart from ensuring acceptability and low cost, it is
vital that the need to address the issue of financial footprints is taken. Our
recommendations are in sync with these observations.
 The framework for recommendation must eventually address the 5 A’s of
promoting financial inclusion through cashless payment instruments.3 These are
availability, accessibility, acceptability, affordability and awareness.
 Availability combines the notion of a level playing field for the service providers
along with the availability of choice of products for the consumers. 
Accessibility as a concept should be the cornerstone to expand the reach of the
banking systems and the various payment products to all the sections of the society
including the ‘aam aadmi’ as part of the financial inclusion plan and efforts. 

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Acceptability is the thought process which enables both the households as well as
the enterprises to embrace the newer products and technology.

Affordability is a key corner stone which should guide the product offering as being
value for money for the households and enterprises with technology. To ensure this,
atleast at the initial stages various discounts have to be in place. and innovation
being the important drivers for providing cost effective and quality services by the
service providers. Awareness- Creating awareness through financial literacy
campaigns is necessary to increase the volumes in the payments business. 

Conclusion:
 The conclusions can be drawn on the basis of data analysis and findings.
 The benefits of this move have now started trickling in with more and more people
switching to digital modes of payment like cashless receiving and making payment.
 India is gradually transitioning from a cash centric to cashless economy.
 Cashless digital transactions are traceably there for easily leaving no room for the
circulation of black money.
 The whole country is undergoing the process of modernization in money transaction
with e-payment service gaining unpreduted momentum.
 A larger number of business even street vendors are now accepting electronic
payments, promoting the people to learn to transact the cashless way at a faster peace
than ever before.

: It is interpreted from the above graph that shows the graph 66% Male responders, 30%
female responders and 4% others responders are respondence in cashless system in
hardwar.

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: It is interpreted from the above graph that shows the graph fully aware 30 responders,
Partly aware 19 responders and 1 responder not responded.

: It is interpreted from the above graph that shows the graph 15 responders are responded
in social Media, 20 responders are responded in friends and 15 responders are responded
in Magazine about the information of cash lees transactions.

:It is interpreted from the above graph that shows the graph 15 responders are responded
in social Media, 20 responders are responded in friends and 15 responders are responded
in Magazine about the information of cash lees transactions.

: It is interpreted from the above graph that shows the graph 36% responders are
responded are aware use for financial e-wallet cashless transaction and 64% responders
are responded are aware use for financial e-wallet cashless transaction.

:It is interpreted from the above graph that shows the graph 12 Male and 8 female
responder are responded are aware use for Smartphone and 24 Male and 22 female
responders are responded are aware use for computer and 14 male and 20 female
responder are responded are aware use for both elements use for cashless making a for
payment.

:It is interpreted from the above graph that shows the graph 12 Male and 8 female
responder are responded are aware use for Smartphone and 24 Male and 22 female
responders are responded are aware use for computer and 14 male and 20 female
responder are responded are aware use for both elements use for cashless making a for
payment.

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: It is interpreted from the above graph that shows the graph 12 people use cashless system
alternative choice, 31 people use cashless system substitute choice and 7 people use
cashless system alternative choice aware and considered this system.

: It is interpreted from the above graph that shows the graph 21 People using the e-wallet
money transfer ,6 people using the e-wallet recharge,5 people using the e-wallet for
utility& bill payment and 18 people using the e-wallet money transfer and aware in
cashless system.

: It is interpreted from the above graph that shows the graph 21 people Available discount
use of e-wallet ,6 people premium offers use of e-wallet and 23 people use of e-wallet
from cashless transaction from cash back sureitty after the cashless transaction are failed

:It is interpreted from the above graph that shows the graph 0-5 Male ,0-2 female are
responders use e-wallet cashless transaction, and more than 10 times and 0-5 are
responders use e-wallet cashless transaction and no use 20 customers this system.

: It is interpreted from the above graph that shows the graph 2 people use daily purpose of
e- wallet, 23 people use weekly purpose of e-wallet and25 people use Monthly purpose of
e-wallet for cashless transaction.

: It is interpreted from the above graph that shows the graph 12 people loaded in money e-
wallet cashless transaction, 14 people loaded in money e-wallet cashless transaction and
24 people loaded in money e-wallet cashless transaction of monthly basis .

:It is interpreted from the above graph that shows the 13 customers loaded money till now
e-wallet cashless transactions, 25 customers loaded money till now cashless transaction
and 12 customers more than 100000 load money e-wallet till now .

: It is interpreted from the above graph that shows the graph 15 customer very satisfied for
the service used, 23 customer satisfied for the use service,6 customer Neutral for the use
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e-wallet system and 6 customer unsatisfied for the use of e-wallet service cashless
transaction .

: It is interpreted from the above graph that shows the graph 10 customers very likely
using e-wallet continue,13 customers likely using e-wallet continue,7 customers Neutral
using e-wallet continue,12 customers unlikely using the favour of e-wallet continue and 8
customer using e-wallet continue this cashless system.

: It is interpreted from the above graph that shows the graph customer perception using
while e-wallet system 27 people say yes obstacles are facing cashless transactions and 23
people customer perception using while e-wallet system people say No obstacles are
facing cashless transactions .

: It is interpreted from the above graph that shows the graph obstacles while using e-wallet
and customers perception show the graph towards.

: It is interpreted from the above graph that shows the graph 38 customers strongly agree
to useful e-wallet service of mode of payment and 12 customers strongly disagree to
useful e-wallet service of mode of payment and its perception and awareness.

: It is interpreted from the above that shows the graph 20 customer widely very likely,6
customer widely neutral, 18 customer widely likely and 6 customer unlikely and its
perception.

: It is interpreted from the above graph that shows the graph 33 people strongly agree
transaction are secured and 17 people strongly disagree transaction are secured and its
perception.

: It is interpreted from the above graph that shows the 40 customer promotes e-wallet to
cashless system to next level and 10 customers promotes e-wallet to cashless system to
next level and its perception.

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: It is interpreted from the above graph that shows the graph 10 customer perception is
very likely, 30 customer perception is likely,6 customer perception is Neutral and 4
customers perception is Unlikely and customer like to refer your friend to use e-wallet.

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 Chapter-6
Suggestions
&
Recommendation

Recomendations

 To make for the smooth implementation of cashless system Hardwar in India, the
following measure are recommended.

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 1. There is a need to intensify the public Inlightement programme about the
cashless system to that everybody will be acquaninted with the system before its
nation-wide introduction since it will affect everybody.
2. Since there is a high rate of illiteracy and all people must be brought into the
system, the government should design special enlightenment Programmes for
the non-literates using probably signs and systems to educate this segment on
how to operate the cashless system.
3. India should make concerned efforts to design an Internal security framework to
check online fraud so that the public can be assured and protected against cyber
attack and fraud.
4. There should be a careful study of the system to determine the number of point
of sales terminates that will ensure its smooth running in India in order to
prevent unnecessary friction in the system.
5. There should be adequate legislation on all aspects of the operations of the
cashless system so that both the operators of the system and the public can be
satisfactory protected.
6. The government needs to ensure that the cost of telecommunications hardware
and software are made cheap. Which will involve examining existing taxes and
import duties.

Suggestions

 The suggested that the government should bear the charges regarding mode of
payment like cashless transaction at airlines, hotels, shopping malls and other

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 private e-payment business establishment and people illiterate of cashless
transactions.
1. This is to encourage the public to go cashless. It also suggested to give
concessions to encourage net banking, e-payment, e-wallet, paytm, another
alternative etc.
2. The other suggestion include –heavy transactions of revenue, excise, departments
should the made through net banking NEFT, RTGS swiping machines should be
supplied to all vat dealers to accept card based cashless payment market yard and
cooperative societies should make online payment to farmers accounts cooperative
societies should sell goods to farmers through cashless payments.
3. All ration shops milk sellers and other should accept mobile payments. Coupons
and mobile payment system should be introduced at Bazaars, special point of sale
machines and apps should be introduced for law cash transactions like vegetables
provisions.
4. Payments for gas cylinders should be made through online only.
5. The government made a task force to suggested people helps in all districts to
solve the public problem and the public should the enlightened about online mobile
and cashless payments.
6. It saves the government substantial costs in printing and circulation of currency
notes.
7. Increased liquidity of many with the banks makes then lower their interest rates
puts the huge amounts of cash deposited with then to some production use.

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 References

: http://iber.isg.pt/ http://revistas.ulusofona.pt

: http://ssrn.com/abstract=687159

: http://Publishing perspectives-com/2017/01 India demonetization-

cashless- bookselling.

:http://www.europeanpayment councileo/pdf/Epc Airticle112.Pdf

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:http:// corporate.visa.com/media/moodys-economy-white-paper.pdf

Author and writer:

(1) Ashish Das and Rakhi Agarwaal (2010),

Books “cashless payment system in India- A Roadmap”

Technical report,IIT
Bombay.HTTP://dspace.Library.litb.ac.in/jspuihandle//10054//732

(2) Bappaditya Mukhopadhyay:

Books “Moving from cash to cashless: challenges and oppoutunities for

india customers and its awreness.

Great lakes Institute of Management, Gurgaon

bappa.m@greatlakes.edu.in

bappa.mukh@gmail.com
www.cashless abstract in India.in

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 Annexure

Questionnaire

Survey On :

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 CUSTOMER AWARENESS AND USAGE OF LEVEL ON
MODE OF PAYMENTS CASH/CASHLESS SYSTEM.
IN HARIDWAR:

Name age :

Sex: locality ;

Question 1: Are you aware regarding the functionality of e-wallets systems in

cashless transaction ?

(1) Fully aware ( ) (2) Partially aware ( )

(3) Not aware ( )

Question 2: where did U get information about cashless transactions ?

(1) Social media ( ) (2) friends ( )

( 3) Magazine/Television ( )

Question 3: Do you use cashless over there e-wallets,e-payments of modes of

payment ?

(1) Time saving ( ) (2) Ease of use ( )

(3) Security ( )

Question 4: Do you use e-wallet for cashless transactions ? (1) Yes ( )

(2) No ( )

Question 5: Which device do you use for making the payment cashless
transaction system.

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(1) Smartphone ( ) (2) Computer ( )

(3) both ( )

Question 6: which cashless transaction do you prefere most of time ?

(1) Paytm ( ) (2) Freecharge ( )

(3) Mobikwik ( ) (4) Google wallet ( )
Question 7: How do you consider e-cashless transactions against other sort
of payment methods ?
(1) Alternative choice ( )
(2) Substitute ( )
(3) Supportive instrument ( )
Question 8: What are your purpose of using cahless system and transactions.
(1) Money transfer ( )
(2) Recharge ( )
(3) Utility & bill payment ( )
(4) All of the above ( )
Question 9: what you help in mind when you use cashles system and
transaction like : e-payment, e- wallet and other cashless techniques.
(1) Available discount ( )
(2) Premium offeres ( )
(3) cash back ( )
Question 10: How many times have you used the cashless based transactions
for payments.
(1) Only once ( ) (2) 5 –times ( )
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(3) More than 10 times ( )
(4) No use ( )
Question 11: How often do you use cashless transactions beside cash
transactions.
(1) Daily ( ) (2)weekly ( ) (3) Monthly ( )
Question 12: How much money do you load in cashless transaction like e-
wallet, paytm on the a monthly basis ?
(1) Less than 500 ( ) (2) 500-1000
(3) More than 1000 ( )
Question 13: How much money have you loaded in e-wallet till now ?
(1) Less than 5000 ( ) (2) 5000-10000 ( )
(3) More than 10000 ( )
Question 14: How much you rate the e-wallet service that you have used ?
(1) very satisfied ( ) (2) satisfied ( )
(3) Neutral ( ) (4) unsatisfied ( )
Question 15: would you want to continue using cahless transaction like: E-
Wallet ?
(1) Very likely ( ) (2) likely ( ) (3) Neutral ( )
(4) Unlikely ( ) (5) very unlikely
Question 16: Are there any obstacles when you cashless based transaction
like ; e-wallet ?
(1) Yes ( ) (2) No ( )
Question 17: What are the obstacles you face while using cashles based
transaction like e-payment,e-wallet ?
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(1) Security of mobile payment ( )
(2) Too fine consumption to set up ( )
(3) Involves danger of losing money ( )
(4) Cannot be used for international transactions ( )
Question 18: Are cashless services like e-wallet useful mode of payement ?
(1) Strongly agree ( ) (2) Strongly disagree ( )
Question 19: Do you then e-wallet should be widely available In India ?
(1) very likely ( ) (2) likely ( )
(3) Neutral ( ) (4) Unlikely ( )
Question 20: Do you belive your transactions are secured ?
(1) Strongly agree ( ) (2) Strongly disagree ( )
Question 21: does using e-wallets promotes cashless payment to the next
level ?
(1) Yes of course ( ) (2) No ( )

Question 22 : would you like to refer your friend to use cahless transaction
like E-wallet ?
(1) Very likely ( ) (2) likely ( )
(3) Neutral ( ) (4) Unlikely ( )

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 Signature :

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