Abstract
Digital Payment the path ahead: A Study on Top Public and Private Sector Banks in India
by
Shiba Prasad Mohanty
Demonetisation resulted in massive changes in several sectors of the economy which includes manufacturing and services. Banking industry is considered to be the most vulnerable sector in the demonetisation process as it controls the entire payment system in India. As per the data reported by Watal Committee that almost 78 per cent of the consumer payments in India was done through the cash based mode, but the restriction on the physical payment mode due to demonetisation forced the banks as well as the citizens to shift towards alternative payment modes for payment and settlements. Hence, banks and other financial institutions have started encouraging their customers to use digital platform for the various needs of the customers. As a result, branch banking operations at most of the banks have declined and electronic channel payments and settlements have increased considerably since demonetization. For instance, the number of transactions made through ATM, point of sale, NEFT, Mobile banking have seen a quantum jump from June 2016 to April2017 respectively. Similarly, the volume of transactions made through ATM, point of sale, NEFT, Mobile banking have also seen a significant growth at that point of time. The results shows that private sector banks have resulted a remarkable growth in every mode of operation than the public sector banks. Basically in POS segment the growth of private sector banks has witnessed a remarkable change at that period of time.This paper attempt to analyze the impact of demonetization on the payment system in India by analysing the data relating to top public and private sector banks.
Committee
Workshop
Key Dates
Communication
First Conference Link
Second Conference Link