Effects of Demonetization on the trend of Digital payments in India

Abstract

In November 2016, Indian government announced demonetizing of 500 rupee and 1000 rupee notes in an effort to curbing corruption, combating crime and preventing of black money. This research paper examines the effects of demonetisation which led to the adoption of digital payments by consumers in India. It also highlights consumer behaviour changes towards digital payments.  The findings suggest that demonetisation had a great impact on the adoption and the usage of digital payments in India, although there are some challenges which need to be addressed. Keywords: Economy, Digital payment, Demonetization