2021, Vol. 4, Issue 2

World is globalising at a very fast pace and internet is playing a greater role in reducing the distance and communication gap among people across the globe. This is a digital world where sharing of thoughts, ideas, trades etc. with rest of the world have become easy and fast. Electronic media has made communication faster and quicker across the nations. India is also not untouched from this globalised digital world. In order to benefit the society from this era of digitalisation a revolutionary step has been taken by Indian Prime Minister, Narendra Modi on 8 Nov, 2017. He announced the demonetisation of Rs.500 and Rs.1000 notes, which was almost 86% circulated in the economy and made a limit on the cash transaction to promote cashless transaction. This step was taken to encourage Paperless economy, Fake currency issues, Black Money and corruption, Excessive cash circulation in Indian economy outside the banking system.

This paper tried to find out the perception of bank’s customers on the use of cashless transaction. Study also tried to determine the customer’s preference method while performing digital transaction and frequency of using cashless transaction. Paper tried to analyse where do digital transaction stand among people? Does cashless transaction has made any changes in the people’s transaction habits? Data was collected through self-structured questionnaire which was distributed among bank’s customers in Srinagar, Garhwal, and Uttrakhand. Questionnaire distributed to 100 customers to draw their perception on cashless transactions. The data was analysed through percentage, mean and factor analysis method.

After studying the data it was found that the cashless transaction are now preferred by the people. They are getting acquainted with the cashless transaction and along with debit cards, they are also preferring mobile banking and internet banking. Mobile banking and internet banking are more frequently used by the respondents whereas weekly transaction with Debit cards is higher. NEFT and RTGS are least preferred by the respondents, this shows that they are not much aware about these methods of cashless transaction. The factor analysis explains that Threats related to security and costs issue are more affecting factor and Adaptability factor has least impact on the perception of respondents while performing cashless transaction. Least impact of adaptability factor shows a hope towards the implementation of cashless economy, as the main reason behind implementation of cashless economy is its adaptation by the people of India.