Impact of COVID-19 on Digital Payments in India


  • Neha Vivek Dharurkar, Ramakrishnan Raman, Ameya Makarand Lonkar


Purpose: To understand whether the COVID-19 pandemic has any impact on use of banknotes for payment transactions and consequent impact on digital payments in India.
Methodology: The study was conducted by reviewing literature on COVID-19 and the action plans undertaken by Central Banks of countries. Survey of retails customers was conducted on sample basis using questionnaire to understand their perspective on spread of COVID-19 through use of banknotes. The relationship of COVID-19 pandemic and the change (increase/ decrease) in the digital payment transactions of customers was studied.
Findings: There is no association between gender / age and the awareness of spread of COVID-19 through banknotes or its usage.The percentage of digital payment transactions have increased during COVID-19. However, there is a need to sensitize people about use of digital modes of payment considering the extent of awareness regarding the spread of COVID-19 through use of banknotes.
Research Implications: The outcome of the research would help in identifying the consequences of COVID-19 and people’s move away from cash and may enable the financial institutions to understand whether adequate payment infrastructure exists to handle such situations in future.
Originality / Value: The study of impact of COVID-19 on the shift of customer preference from use of physical banknotes to digital currency has not been studied.
Keywords—Digital payments, Currency notes, COVID-19