Completed Projects 2014

The Cost Of Cash In India

The payments business in India is on the cusp of a revolution. With rapid growth and modernization of the economy, there is no doubt that a majority of India’s 1.2 billion plus citizens will demand and get modern financial services far superior to what their parents’ generation enjoyed. It is simply a matter of when the supply side catches up.

This study was a mix of research efforts that analyzed the most pertinent policy documents, reports, scholarship, expert interviews, and payments data. It is different from much of the academic work in payment economics, which focuses explicitly on social costs with a view toward informing debates around payment clearing and settlement. Instead, we analyze the private costs to households and businesses that arise from their use of cash, beginning when cash is received and ending when it is spent again.

Sponsor: The Institute for Business in the Global Context, The Fletcher School, Tufts University and National Institute for Bank Management (NIBM).

Research Team: Rajesh Shukla, Bijay Chauhan, Lokesh Diwedi

2014

The Cost of Cash in India - Completed.

Sponsor

The Institute for Business in the Global Context The Fletcher School, Tufts University and National Institute for Bank Management (NIBM).

Objectives

  • To map where and why people use cash and their attitudes to cash and non-cash media to provide a framework for creation of new non-cash products that can compete well with cash.
  • To understand the attitudes and barriers to use non-cash; perception about the problems with cash and suggest the appropriate interventions towards accelerating non-cash usage.

Coverage

Delhi Urban, Delhi Rural, Meerut Urban, Meerut Rural

Sample Design

Two-stage stratified random sampling

Sample Frame

4,500 individuals

Sample Size

1,000 individuals

Method of Data Collection

Face-to-face questionnaire-based approach

Respondents

Individuals over 20 years of age representing diverse SEC categories.

Reference period

The financial year 2012-13

Survey period

April-May 2013

Research Team

Rajesh Shukla, Bijay Chauhan, Lokesh Diwedi