Abstract & Overview
This article mainly focuses on the impact that Demonetization has had on the various payment methods in India.Demonetisation keeps digital payments up; cashless transactions grow 13.5% in September.As per RBI reports, digital transactions have grown 13.5 per cent from Rs 109.82 trillion in August to Rs 124.69 trillion in September; the highest was in March at Rs 149.59 trillion.In the year after demonetisation, digital transactions have grown considerably.With digital wallets, quick response (QR) codes, near field communication (NFC) technology, sound wave systems, virtual cards, unified payment interface (UPI) and Aadhaar Pay offering top-notch secure payment options, the smart phone has become the most sought after all-in-one device.Government and the RBI are continuously exploring cashless payments across the country.This paper explores the effect of demonetization on payment system in the Indian economy.It aims to see how the various digital platforms have evolved with the advent of demonetization.This study also gives an insight in to the effects of demonetization, the positive and negative impacts in the Indian economy.Demonetisation for a short term may be negative but in long term it may be very positive for the growth of e-commerce industry and also it removes the corrupt practice of generating black money with otherwise is not possible in the case of digital payment system.