PUBLIC AWARENESS ABOUT CASHLESS ECONOMY WITH REFERENCE TO BANKING SECTORS IN SUBURBAN AREA. Chennai, Tamilnadu, India. Coimbatore, Tamil Nadu, India,

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1 Volume 119 No , ISSN: (on-line version) url: PUBLIC AWARENESS ABOUT CASHLESS ECONOMY WITH REFERENCE TO BANKING SECTORS IN SUBURBAN AREA. 1 E. GOPI, 2 Radhika E.F.A, 3 Dr.R.Gokilavani, 4 V.Dineshkumar, 1 Assistant Professor, Department of Management studies, Jeppiaar Engineering College, Chennai, Tamilnadu, India 2 Assistant Professor, Amity Global Business School, Chennai, Tamilnadu, India 3 Assistant Professor, Department of Management, Kumaraguru College of Engineering, Coimbatore, Tamil Nadu, India, 4 Associate Professor, Department of Electronics and Instrumentation Engineering Kumaraguru College of Technology, Coimbatore, Tamil Nadu, India 1 ethirajgopi@gmail.com, 2 radhikafrancisca@gmail.com, 3 gokilavani@kctbs.ac.in, 4 dineshkumar.v.eie@kct.ac.in. ABSTRACT Our Prime Minister Narendra Modi introduced Digital India programme with a vision to transform India into a digitally empowered society and knowledge economy. This was also a step taken to remove black money and abolish corruption. During the time of demonetization many people in rural and semi-urban area were affected because of lag in knowledge of technological facilities. This research is carried out to study the awareness level of people with respect to cashless economy. The objective focuses the reasons for non-acceptance and satisfaction level of respondents to improve the service of the banks, to identify the customer s perceptions about internet banking and drivers that motivate customers to use new techniques. This study is based on Descriptive research and data is collected through structured questionnaire in semi urban area (bank account holders). The population size is infinite. So the research is based on Convenience sampling and approximately 150 sample size has being takethe finding of the research will be helpful for the bank to fulfill the knowledge 2277

2 gap of customers and improve their service to take adequate reforms in terms of banking in semi-urban area. It helps public to migrate towards cashless society. Keywords: Technological development in banking sectors, Demonetizations, Net banking 1. INTRODUCTION: India is making a major step forward for online and card based payments/ transactions to move towards a cashless economy. India has one of the highest cash to gross domestic product ratios in the world. Not only that according to a study conducted in Tufts University, The cost of cash in India, cash operations cost RBI and commercial banks at Rs crores annually. According to a report by Google India, it is said in the year 2020 India will be using online wallet mode of digital payment system which will be 10 times the current level. The World Bank s Global Findex shows that Indians are significantly less familiar with digital banking, making transitions using mobile phones and paying bills through internet. Modes of cashless payment: As part of promoting cashless transactions and converting India into less-cash society, various modes of digital payments are available. Banking cards: Banking cards help customers to make payments in a secure and convenient way. This includes debit and credit cards, These cards provide 2 factor authentication through OTP and PIN. USSD: The innovative payment service *99# works on Unstructured Supplementary Service Data Channel. This service allows mobile banking transactions using basic featured mobile phones. To access this there is no need of internet connectivity too. This works on MMID and MPIN. AEPS: AEPS is a bank led model which allows online financial transaction at PoS (Point of Sale / Micro ATM) through the Business Correspondent (BC)/Bank Mitra of any bank using the Aadhaar authentication. Mobile wallets: It is a way to carry cash in digital format. We can link your credit card or debit card information in mobile device to mobile wallet application or we can transfer money online to mobile wallet. e.g. Paytm, Freecharge, Mobikwik, Oxigen, mruppee, Airtel Money, Jio Money, SBI Buddy, itz Cash, Citrus Pay, Vodafone M-Pesa, Axis Bank Lime, ICICI Pockets, SpeedPay etc. Internet banking: Also called e-banking or virtual banking, is an electronic payment 2278

3 system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website.eg NEFT,RTGS,ECS,IMPS, 2. REVIEW OF LITERATURE: 1. Tojo Jose(2016) in a article said Digitalization of transactions is the best way to move towards a cashless economy. Governments demonetization drive is also supposed to benefit cashless economy. Nearly 95% of transactions takes place in cash. Large size of informal/unorganized sector entities and workers prefer cash based transactions. They don t require digital and literacy. There are number of ATMs across the world but most of them are used for cash withdrawals. Only low level of digital payment using ATM cards. Multiple holding of cards in urban and semi-urban areas show low rural penetration. For settling transactions digitally, internet connection is needed. Bu in India, there is poor connectivity in rural areas. In addition to this, a lower literacy level in poor and rural parts of the country, make it problematic to push the use of plastic money on a wider scale. 2.Nwankwo, Odi(2013) in his research paper Electronic Payment in Cashless Economy of Nigeria mentioned the electronic system of payment has a great implication in cashless economy of Nigerian but it will led to significant decrease in deposit mobilization and credit extension by Nigerian deposit money banks. The sensitization exercise would require the combined effort of various stakeholders, including government, financial institutions, clergy and non-bank providers of payment services. There should be improvement in infrastructural development so as to enhance e-payment system. 3.Ashish Das and Rakhi Agarwal, (2010) in their article Cashless Payment System i n India- A Roadmap Cash as a mode of payment is an expensive proposition for the Government. The country needs to move away from cash-based towards a cashless (electronic) payment system. This will help reduce currency management cost, track transactions, check tax avoidance / fraud etc., enhance financial inclusion and integrate the parallel economy with main stream. 2279

4 Objective: To identify the usage level of people with respect to cashless trade. To understand the factors responsible for reluctance of change. To identify the efficient use of technology with respect to banking. 4. Data Analysis & Interpretation 3. RESEARCH METHODOLOGY: Research design is a conceptual structure within which research should be conducted. Thus the preparation of such design facilitates research to be as efficient as possible and will yield maximum information. The study based on the Descriptive Research. In order to collect data the researcher prepared a structured questionnaire. The total population is infinity so the researcher has chosen Convenience Sampling based on research convent the sample size obtained 143 from Thiruporur area. Inference: From the above pie chart it is inferred that 33% are from the age group of 32-38, 29% of the respondents are from the age group of 39-45,11% are from 25-31, 10% each from and 46-52, 7% from

5 Inference: From the above pie chart it is observed that 43% of the respondents have completed primary school, 15% come under intermediate, 13% come under degree category, 10% each have finished their high school and are illiterate, 5% have completed masters and 4% are under other category. Inference: It is observed from the above chart that 60.13%,44.75%,37.06% and 61.53% are aware about debit card, credit card, net banking and cheque respectively. All people are aware about cash payment. MANN WHITNEY U TEST OBJECTIVE-To identify the relationship between gender and attribute value HYOPTHESIS Null hypthesis (H 0 ) -There is no significant difference between gender and attribute value of the bank. Alternate hypothesis (H 1 )- The is significant difference between gender and attribute value of the bank. ATTRIBUTE MALE FEMALE VALUES Service Quality Location 9 19 Reputation 6 5 Technology Used 10 6 Ownership 5 7 TOTAL Inference: It is noticed from the above chart that from 143 respondents each, 30% of them use debit card,19.6% use credit card,23.78% use net banking and 33.57% use cheque for making payments. Z = The critical value of Z at ɑ = 0.05 is 1.96 Calculated value is So, H 0 is rejected, H 1 is accepted Inference: From the above analysis it is observed that there is significant difference between gender and attribute value of the bank. 2281

6 CORRELATION Objective - To identify the relationship between monthly income and net banking. HYOPTHESIS Null hypothesis(h 0 )-There is no significant relationship between monthly income and usage of net banking. Alternate hypothesis (H 1 ) - The is significant relationship between monthly income and usage of net banking. Correlations use net monthly banking income use net Pearson * banking Correlation Sig. ( tailed) N monthly Pearson * 1 income Correlation Sig. ( tailed) N *. Correlation is significant at the 0.05 level (2- tailed). Inference: From the above analysis it is inferred that ɤ = which is negative correlation. The significance value.183 is more than.05, so H 0 is accepted. Therefore there is no significant relationship between monthly income and usage of net banking. 5. SUGGESTION Regulatory authorities should ensure that all service providers who have been licensed should start operations because the number of Point of Sale (PoS) terminals in the country is very few. Today, there are charges for online transfer to other banks, paytm and other wallet etc., This is high enough that vendors & domestic helps wont like to come on e-wallets. Government should intervene. May be compensate to banks, e- wallets companies, in some other way. Make compulsory that, these card holders should use card for all purchases and other payments through ATMs or Swiping Machine available in the banks and other outlets. Improved connectivity is a key to encouraging online payments. While there has been growing adoption of smart phones in India, there is a severe need to enhance the infrastructure in the country to attain high speed internet connections especially in rural areas. More awareness can be given to rural areas in terms of net banking as only very 2282

7 few percentages of people have known this facility. Female customers can be given adequate training in usage of technology The government needs to take the necessary steps and make some policy considerations when they are preparing for a cashless economy. The payment systems have to be protected from the cyber attacks which are the major threat for cashless transactions. 6. CONCLUSION: The migration of our payments system towards a cashless society would require some reform and a lot of effort and sensitization especially for low income customers, who are currently deeply rooted in using cash and see it as a convenient and easy way of receiving and making payments. Smooth, simple and secure payment process will help to bring about behavioral changes and faster adoption of digital payments. It would take a lot of effort to steer the country on the path to a cashless economy because millions of people out there are yet to cultivate the banking habit. Increasing use of mobile phones is going to revolutionize the banking sector in near future. 7. REFERENCES [1] Piyush kumar An Analysis Of Growth Pattern Of Cashless Transaction System Impact Journals Vol. 3, Issue 9, Sep 2015, [2] Rajesh Kumar Srivatsava. Perception On Usage Of Internet Banking Innovative marketing,volume 3,Issue 4,2007. [3] K. Jothi Krishnasamy and Parameswaran Subramanian, Tax Burden and its Impact on Individual Earning group A Perspective of Salaried Class People in India, International Journal of Pure and Applied Mathematics, Volume 117 Issue. 15, 15-24, [4] Irfan Ahmed Mohammed Saleem, Dr. S. Jaisankar, A Study On Kaizen Based Soft- Computing In Electric Vehicle Manufacturing Processes, International Journal Of Innovations In ScientificAnd EngineeringResearch, Vol5 Issue5,.31-39, [5] Ashish Das and Rakhi Agarwal. Cahless Payment System In India:A Roadmap Technical Report

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