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The Impact Of Covid-19 On Digital Payment Habits Of Indian Households

Author

Listed:
  • Rajas Saroy

    (Reserve Bank of India)

  • Sakshi Awasthy

    (Reserve Bank of India)

  • Naveen K. Singh

    (Reserve Bank of India)

  • Sonali M. Adki

    (Reserve Bank of India)

  • Sarat Dhal

    (Reserve Bank of India)

Abstract

The COVID-19 induced lockdown in India was an inflection point for on-boarding of new users into digital payments. Using a large survey dataset, we examine the driving factors of this shift for those who used digital payments for the first time. Apart from demographic drivers of payment choice traditionally explored in the literature, we find that this shift was significantly shaped by the degree of awareness of digital modes, access to smartphones and debit cards, and pandemic-relief welfare transfers. Users who had abandoned digital payments due to prior bad experience switched back to such modes.

Suggested Citation

  • Rajas Saroy & Sakshi Awasthy & Naveen K. Singh & Sonali M. Adki & Sarat Dhal, 2022. "The Impact Of Covid-19 On Digital Payment Habits Of Indian Households," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 25(Special I), pages 19-42, March.
    • Handle: RePEc:idn:journl:v:25:y:2022:i:spd:p:19-42
    DOI: https://doi.org/10.21098/bemp.v25i0.1823
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Payment systems; Logistic regression; Digital economy;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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