Indian Journal of Economics and Development

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Impact of Demonetization on Adoption of Digital Banking Services in India: A Case Study in Rural and Suburban Area of West Bengal


Affiliations
1 Department of Commerce, University of Burdwan, Burdwan-713104, India
 

Objectives: To examine the awareness and adoption level of people of rural and urban India about Digital Banking Services (DBS) at pre and post demonetization era.

Methods/Statistical Analysis: In this work, we have studied the effects and shifting trends in availing DBS and change in perception on Banking Services of customer, which is supported by a survey based on 500 respondents. One way ANOVA test has been employed to examine the possibility of existence of any statistically significant difference between adoption rate of DBS and different factors such as demonetization knowledge, reliability, transaction efficiency, customer support, service security, ease of use, performance and service content.

Findings: It has been observed that though rural and urban people have a noticeable awareness about the demonetization process but the percentage of users for all categories of DBS (card, internet and mobile) are very high for the urban sector than the rural sector. The rural people are found to be more convenient to use card banking (percentage of only card banking facility users is 63.00%) than the other two categories of DBS (internet and mobile banking). Similarly, demographic profile such as gender, education, occupation, age, income creates an impact for availing DBS. It has also been observed that adoption level of digital banking service is dependent on demonetization knowledge, reliability, customer support, service security, ease of use and performance (p <0.05). But the Statistically insignificant effect has been observed on transaction efficiency (p= 0.398>0.05) and service content (p =0.059 > 0.05) on adoption of digital banking services.

Application/Improvements: This study indicates that bankers and service designers should organise different campaign and hand-on training that may inspire people for adopting DBS and moving India towards ‘Digital India’.


Keywords

Digital Banking Services, Demonetization, Demography, ANOVA Test, DBS Adoption Rate.
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  • Impact of Demonetization on Adoption of Digital Banking Services in India: A Case Study in Rural and Suburban Area of West Bengal

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Authors

Mahasweta Roy (Dutta)
Department of Commerce, University of Burdwan, Burdwan-713104, India
Arindam Das
Department of Commerce, University of Burdwan, Burdwan-713104, India

Abstract


Objectives: To examine the awareness and adoption level of people of rural and urban India about Digital Banking Services (DBS) at pre and post demonetization era.

Methods/Statistical Analysis: In this work, we have studied the effects and shifting trends in availing DBS and change in perception on Banking Services of customer, which is supported by a survey based on 500 respondents. One way ANOVA test has been employed to examine the possibility of existence of any statistically significant difference between adoption rate of DBS and different factors such as demonetization knowledge, reliability, transaction efficiency, customer support, service security, ease of use, performance and service content.

Findings: It has been observed that though rural and urban people have a noticeable awareness about the demonetization process but the percentage of users for all categories of DBS (card, internet and mobile) are very high for the urban sector than the rural sector. The rural people are found to be more convenient to use card banking (percentage of only card banking facility users is 63.00%) than the other two categories of DBS (internet and mobile banking). Similarly, demographic profile such as gender, education, occupation, age, income creates an impact for availing DBS. It has also been observed that adoption level of digital banking service is dependent on demonetization knowledge, reliability, customer support, service security, ease of use and performance (p <0.05). But the Statistically insignificant effect has been observed on transaction efficiency (p= 0.398>0.05) and service content (p =0.059 > 0.05) on adoption of digital banking services.

Application/Improvements: This study indicates that bankers and service designers should organise different campaign and hand-on training that may inspire people for adopting DBS and moving India towards ‘Digital India’.


Keywords


Digital Banking Services, Demonetization, Demography, ANOVA Test, DBS Adoption Rate.

References