A STUDY ON THE AWARENESS AND PERCEPTION

OF CUSTOMERS TOWARDS CASH LESS

TRANSACTION

Project Report Submitted to the

University of Calicut
In partial fulfillment of the requirements for the award of the Degree of

Bachelor of Commerce

By
SHAHINSHA ABDURAHIMAN
REG NO: KVARBCM055
Under the Guidance of

Dr. Divya M
Research & PG Department of Commerce

MES KEVEEYAM COLLEGE VALANCHERY

NAAC RE ACCREDITED WITH A GRADE (3.28)
VALANCHERY -676552 PIN -MALAPPURAM
2017-2020
I, SHAHINSHA ABDURAHIMAN VI [Link] student
of Research and PG Department of Commerce, MES
Keveeyam College Valanchery hereby declare that the project entitled “A STUDY ON
THE AWARENESS AND PERCEPTION OF CUSTOMERS TOWARDS CASH LESS
TRANSACTION” is the record of the bonafide work that I have done under the
supervision and guidance of Dr. Divya M in the Research and PG Department of
Commerce, MES Keveeyam College Valanchery as part of the curriculum. It is declared
that this project report and any part of it have not been published for the award of degree,
diploma, title or reorganization before.

Valanchery SHAHINSHA ABDURAHIMAN

28 February 2019
 Research and PG Department of Commerce

M E S KEVEEYAM COLLEGE
(Affiliated to the University of Calicut)
Valanchery – 676552, Malappuram Dt., Kerala State

Phone: 0494 – 2644380, 2642670, 2641347(Fax),[Link]

Email: principal@[Link]

Date:
………………….

This is to certify that the project report entitled“A STUDY ON THE

AWARENESS AND PERCEPTION OF CUSTOMERS TOWARDS CASH LESS
TRANSACTION” is the record of bonafide work that Mr SHAHINSHA ABDURAHIMAN
has done under my supervision and guidance. The project has not previously formed
the basis for the award of any degree, diploma, associateship, fellowship or any
other similar title or recognition from this or any other Institute or University.

Valanchery
28 February 2019 [Link] M
 Head, Research and PG Department of Commerce

M E S KEVEEYAM COLLEGE
(Affiliated to the University of Calicut)

Valanchery – 676552, Malappuram Dt., Kerala State

Phone: 0494 – 2644380, 2642670, 2641347(Fax),[Link]

Email: principal@[Link]

This is to certify that the project report entitled“A STUDY ON THE

AWARENESS AND PERCEPTION OF CUSTOMERS TOWARDS CASH LESS
TRANSACTION” is the record of bonafide work that Mr SHAHINSHA ABDURAHIMAN,
VI Semester [Link] student has done under the supervision and guidance of [Link]
M, Assistant Professor, Research and PG Department of Commerce. The project has
not previously formed the basis for the award of any degree, diploma, associateship,
fellowship or any other similar title or recognition from this or any other Institute or
University.

Valanchery Dr. PC Santhosh babu

28 February 2019
 This project would not have been possible without
contribution and support of many people, to all of whom I
am deeply indebted.

First and foremost, I thank God for his Almighty support and
merely drop of blessings upon me to complete my project
within the stipulated time.

I wish to express my sincere gratitude to Capt Dr ABDUL

HAMEED .C the respected principal of our college, his support
and encouragement have been a catalyst to the successful
completion of this work.

I express my profound gratitude and indebtedness to

my supervising teacher, [Link] M Assistant
Professor, PG Department of Commerce, MES KEVEEYAM
COLLEGE VALANCHERY for the guidance and help extended
to me at all times of my work. The timely suggestions,
scholarly instructions and constant blessings that I
received from my guide encouraged me to successfully
complete my work.
I extremely thankful to Dr P C SANTHOSH BABU (Head
of the PG Department of Commerce, MES KEVEEYAM
COLLEGE VALANCHERY for the constant support and
encouragement granted throughout the project.

I am also indebted to all lecturers, friends and associates

for their valuable advice, stimulated suggestions and

[Type text] Page 6

 overwhelming support, without which the project would not
have been a success.

I wish to extend my heartfelt gratitude to all my dear

friends for their prayers and for their constant
encouragement. This thesis would not have been
complete without the support and prayers of my parents,
brothers and sisters. I thank them for all the love,
prayers, blessings and encouragement.
SHAHINSHA ABDURAHIMAN

CONTENTS
CHAPTER TITLE PAGE NO.
NO.
1 1.1 INRODUCTION 8-13
1.2 IMPORTANCE OF THE STUDY
1.3 STATEMENT OF THE PROBLEM
1.4 SCOPE OF THE STUDY
1.5 OBJECTIVES OF THE STUDY
1.6 VARIABLES USED IN STUDY
1.7 RESEARCH METHODOLOGY
1.8 SOURCE OF DATA
1.9 TOOLS USED FOR DATA COLLECTION
1.10 TOOLS USED FOR ANALYSIS
1.10 LIMITATIONS OF THE SUDY
1.11 TOOLS USED FOR ANALYSIS
1.12 TOOLS USED FOR ANALYSIS
2 REVIEW OF LITERATURE 14-18
3 THEORETICAL FRAMEWORK 19-27
4 DATA ANALYSIS AND INTERPRETATION 28-49
5 FINDINGS, SUGGESTIONS AND
CONCLUSION 50-52
5.1 FINDINGS
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 5.2 SUGGESTIONS
5.3 CONCLUSION
BIBLIOGRAPHY 53
ANNEXURE 54

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 LIST OF TABLES
TABLE NO. TITLE PAGE NO.
4.1 AGE OF RESPONDENTS 29
4.2 GENDER 30
4.3 EDUCATIONAL QUALIFICATION 30
4.4 OCCUPATION 31
4.5 MONTHLY INCOME 32
4.6 USAGES OF BRANCH BANKING 33
4.7 USAGES OF ATM 34
4.8 USAGES OF INTERNET BANKING 35
4.9 USAGES OF MOBILE BANKING 36
4.10 PERCENTAGE OF CASHLESS PAYMENT 38
OF USERS
4.11 RANKING MEDIAS PROVIDING 39
AWARENESS REGARDING CASH LESS
TRANSACTION
4.12 RANKING OF CASHLESS 40
TRANSACTIONS’ BENEFITS
4.13 RANKING LEVEL OF SATISFACTION 42

4.14 RANKING OF PROBLEMS 43

4.15 CROSS TABULATION ON AGE 45
4.16 CROSS TABULATION ON GENDER 46
4.17 CROSS TABULATION ON EDUCATION 47
4.18 CROSS TABULATION ON OCCUPATION 48
4.19 CROSS TABULATION ON MONTHLY 49
INCOME

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 LIST OF FIGURES
FIGURE NO. TITLE PAGE NO.
4.1 AGE OF RESPONDENTS
4.2 GENDER
4.3 EDUCATIONAL QUALIFICATION
4.4 OCCUPATION
4.5 MONTHLY INCOME
4.6 USAGES OF BRANCH BANKING
4.7 USAGES OF ATM
4.8 USAGES OF INTERNET BANKING
4.9 USAGES OF MOBILE BANKING
4.10 PERCENTAGE OF CASHLESS PAYMENT
OF USERS
4.11 RANKING MEDIAS PROVIDING
AWARENESS REGARDING CASH LESS
TRANSACTION
4.12 RANKING OF CASHLESS
TRANSACTIONS’ BENEFITS
4.13 RANKING LEVEL OF SATISFACTION

4.14 RANKING OF PROBLEMS

4.15 CROSS TABULATION ON AGE
4.16 CROSS TABULATION ON GENDER
4.17 CROSS TABULATION ON EDUCATION
CROSS TABULATION ON OCCUPATION

CROSS TABULATION ON MONTHLY

INCOME

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 CHAPTER 1

Introduction

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1.1 Introduction

India is moving on the path of a major digital revolution. Digitalization of the

payment mechanism will be considered as a milestone in the era of cashless future economy.
The growth of the Indian digital payments space is expected to be driven by four trends that
are also likely to impact how this industry looks in the future. India going digital, favorable
regulatory environment, emergence of next generation payment service providers and
enhanced customer experience are the four drivers contributed to the growth of Indian digital
payment systems. Illiterate people don’t know how to use digital transactions. Financial
literacy and awareness about cash less transactions are paramount in India to make the
cashless economy. Nearly 26% of India has internet access, and total transaction value in the
digital payments amount to US$ 51.756 million in 2018.

Banks and financial institutions offering discounts on purchase with credit/ debit
cards and online wallets offering attractive deals for payments have made Indians
comfortable with paperless transactions. The cashless transaction is a new application of
mobile payment that has functionality to displace a conventional wallet and more. Mobile
payments are a top investment priority for banks. In fact, the world’s biggest banks continue
to focus most of their announced IT initiatives on mobile financial services (including
payments) and online banking.

1.2 Importance of the Study

The cashless transaction is one of the most important concepts now-a-days, Prospects
for Cashless Economy in India. Around 5% of fund transactions in India are driven by the use
of mobile wallets and electronic payment system. The main advantages of cashless
transactions are that the digital transactions ensure recording of all economic transactions.
Digitalization means makes it almost possible to control black money markets which often
prove damaging to national economics. It helps increase the tax income of the government.
The advantages to citizens of a county in a cashless economy are risk of carrying currency
notes and loss of hard earned money can be avoided. Transaction costs, making the payment
and time consumption will be reducing. Cashless transaction is convenient for shopping,
payment of bills and scheduling of financial transactions managed from home, office or

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wherever with a smart phone. It also reduces expenditure of printing of currency notes and its
transportation.

1.3 Statement of the problem

India is in the second position in the world in population. Still Indian economy is
developing economy in the world. So the government of India taking some initiative to
develop our economy, our honorable prime minister introduces the digital India for adopting
the technology and maintains all transactions should be digital transactions in our country. In
order to accelerate the execution of the concept of digital economy there are number of
digital payment systems introduced. These payment systems can make changes in the
standard of living of people. In India, many cashless payments systems were launched such
as E-Payments, online payments IMPS, NEFT and mobile wallets etc… In this research the
researcher article indicates that various cashless payments through in India and its impact of
after demonization.

1.4 Scope of the study

The scope of the study confined to the methods used in digital payments and
difficulties faced by the users from different parts and how the future of the payment methods
in college students in Tirur Taluk

1.5 Objectives of the study

1. To analyse the awareness level of consumers towards cash less transactions

2. To analyse the perception of the consumers towards cash less transactions
3. To identify the factors influencing the acceptance of cash less transactions by the
consumers
4. To analyse the problems faced by the consumers while making online transactions

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1.6 Variables used in study

I Demographic variables:

 Age
 Gender
 Education
 Occupation
 Monthly income

II Study variables:

 Awareness
 Branch banking
 ATM
 Internet banking
 Mobile banking
 Tele banking
 Debit/credit card
 RTGS
 NEFT
 POS
 Digital wallets
 Benefits

 Easy and save time

 Lower Risk

 Secure Privacy

 Control Black Money

 Control the corruption

 Transparency and Accountability

 Safety

 Control illegal Activities

 Prompt Settlement

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  Increase the Tax Base

 Problems
 ATM Machine out of cash
 Charges of Online Transaction
 Problem of Internet connection
 Hacking Problems
 Not giving fast response
 Lack of appropriate software.
 Cyber Crime
 Non printing of ATM statement
 Lack of Security and Safety
 Not providing payment information
 Illiteracy

1.7 Research Methodology

 Research Design

The present research work is descriptive in nature. It was done in college students in
Tirur Taluk.

 Population

The population consist of all college students in tirur taluk

 Sample Unit

60 users of digital payments were taken as sample of study.

 Sampling Method

A convenient sampling method is used to collect data from the students and professionals.

1.8 Source of Data

 Secondary Data
The secondary data is collected from books, journals, website, literatures, manual
and their annual report.

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  Primary Data
Primary data is collected from digital payment users in Tirur Taluk.

1.9 Tools Used for Data Collection

A scheduled questionnaire is using to collect data from the respondents.

1.10 Tools Used for Analysis

Percentage analysis and Weighted Average Score are used as a tool for this study. The
interpretation is diagrammatically represented using different diagrams.

1.11 Period of Study

The study was conducted for a period of 21 days

1.12 Limitation of the Study

1. Short span of time.

2. The response given by some users are based on their available digital payment
platform.
3. Some respondent were not disclose their personal transaction details

1.13 Structure of the Report

The project consists of 5 chapters.

Chapter 1 deals with introduction of the study, relevance of the study, scope and
objectives of the study, variables used in the study, and research methodology.

Chapter 2 contains review of literature. In this study review about the different
studies are included.

Chapter 3 consists of the theoretical framework.

Chapter 4 deals with analysis of the data and interpreting the result in forms of
diagram, tables, and graphs etc.

Chapter 5 includes finding, suggestion and conclusion.

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 CHAPTER 2

REVIEW OF LITERATURE

Dr. Shilpa(2018)- Moving Towards Cashless India ,Investigated the factors involved in
adoption of a new innovation by consumers in the mobile payment. The research was

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conducted to find out the various factors affecting consumer intention to use mobile payment.
The research findings stated that performance expectancy, effort expectancy, social influence,
facilitating conditions have significant effort on mobile payment service adoption

According to Mr. Pradeep H. Tawade (2017), Government had to take necessary steps
in the formulation of cashless economy and for this, banks had to maintain liquidity for
convenience and Government should also try to improve infrastructure so that more and more
people can come into net banking and internet. Therefore, at conclusion, cashless provides
additional benefits to cashless system and produces more ease than comfort to society,
business and government.

Mrinalini Kaul, Purvi Mathur. (2017) claimed that Digitalization brings many benefits
like transparent flow of funds, reduce tax evasion, easy of working, new job opportunities etc,
but it is necessary to have financial literacy and financial knowledge. Their study indicated
that there is inconvenience of digital and financial knowledge in cashless transactions and
had to overcome by raising awareness programme of its functional benefits to people and
businesses.

[Link] A. Shendge, Mr. Bhushan G. Shelar [Link]. Smitaraja S. Kapase.

(2017) in their study, the benefits and impact of cashless transaction had extracted. After
demonetization the people moving cash to cashless by utilizing the digital payment system.
Digital transactions have more benefits than cash transactions such as elimination of
corruption, transactions can detect and so easy for taxation. Many vendors and shopkeepers
started adopting e-payment system. The cashless payment system is become strenuous to
people to learn and adopt in day to day life.

Dixit R, [Link]. (2017) -A Study on Adoption of Mobile Wallet for Cashless Economy,
Have conducted a research to understand the factors that affect consumer’s adoption of
mobile wallet. Survey was conducted among 210 mobile phone consumers to understanding
the mobile wallet adoption. The results show that the Perceived Risk, Performance
Expectancy, Facilitating Conditions, Perceived Value,Social Influence, Perceived Regulatory
Supports well as Promotional benefits are important aspects in predicting Behavioral
Intention to accept mobile wallet adoption. It is also found the effort expectancy was
insignificant

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 Dr. Tushar Chaudhari. (2017) recommended that to promote cashless transactions
prerequisites the internet infrastructure with free Wi-Fi facility at market place. Also he
added that charges on transaction by cards should be removed so that can be utilized at all
level. Cash back plan should initiate to both merchants and customers and for this it is
required PoS and other cashless platform. This should also produced at domestic to
reinvestment and achieve the Make in India goal.

Dr. Thomas (2016) -Driving Financial Inclusion in India, A Study on Mobile Wallet
Services Offered by Banks in Kerala ,They have conducted a study on “Cash-less Society:
Drives and Challenges in Nigeria” to analyze if it ispossible for developing a cash-less
society through more actual use. This research investigated the cash-less economic
structurehas to evaluate its possibility in Nigeria through concerns to save time, awareness
and adequacy the environment of level and improvement both educationally and
technologically

Igbara, felis N, Emerenini Fabian, M. Daasi, Gibson L.K. (2015), studied the impact
of cashless policy on small scale business in Ogoni Land River State, Nigeria. In their
findings the level of adoption of cashless policy statistically was low and had negative impact
on the performance and growth of small scale business in Ogoni Land. Preeti Garg, manvi
Panchal (2017), in their opinion, cashless economy assist to fight against corruption and
money laundering but the biggest obstacle is cyber crime, illegal access to personal data, lack
of transparency and efficiency in E-payments.

Yu (2012)- Factors affecting individuals to adopt Mobile Banking ,empirical evidence

from the UTAUT model : A study has been conducted among different companies to
understand different aspects that influence the user’s decision to accept mobile wallets.
Survey was conducted among 150 mobile phone consumers to understand the reason for
mobile wallet adoption. He has analyzed the data by using ANOVA to interpret the results.
He concluded that convenience of shopping and brand loyalty play important factors in
acceptance of mobile wallets. He added safety of funds and security play a challenging aspect
for continue usage of mobile wallets

According to Alvares, Cliford (2009) in their reports ―The problem regarding fake
currency in India.‖ It is said that the country's battle against fake currency is not getting easier

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and many fakes go undetected. It is also stated that counterfeiters hitherto had restricted
printing facilities which made it easier to discover fakes.

Chen (2008) -A model of consumer acceptance of mobile payment, Said that cash
back on digital payment is an effective method of motivating the population to adopt cashless
transaction. After the demonstration was successful,an effort to encourage cashless
transactions began in semirural and rural India

Jain, P.M (2006) in the article ―E-payments and e-banking‖ opined that e- payments
will be able to check black ―An Analysis of Growth Pattern of Cashless Transaction
System. Taking fullest advantage of technology, quick payments and remittances will ensure
optimal use of available funds for banks, financial institutions, business houses and common
citizen of India. He also pointed out the need for e-payments and modes of e-payments and
communication networks.

From the foregoing survey of literature on related area, it is found that different studies
have been carried out by several researchers and institutions in the area of cashless
transactions in Kerala. But very rare studies have been conducted on the cashless tansactions
in Tirur taluk of Malabar region. In this scenario, the researcher has made a novel attempt to
fill the gap.

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 Chapter 3

Theoretical Framework

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INTRODUCTION

HISTORICAL BACKGROUND

To understand the cashless methods of transactions the researcher will have a quick
overview on cash and its transactions. Money is one the most important means to fulfil our
needs and wants. The means to satisfy our needs and wants are currencies of different types
that are issued by the governments of a country and then they are exchanged in lieu of
products and services. The money is a developed type of means for day to day transactions
and has emerged from various systems of exchange in human civilization. Earlier, there were
no currencies but all the important goods and services were acquired by exchanging other
goods and services; this system of exchange was known as a Barter system. The need for
monetary value was emerged as a psychological assurance to trust each other and to involve
an external body to promise the payment in terms of a promissory note or a coin, this is the
time when currencies or coins came into existence. Ancient china, India, and Africa started to
use cowries and shekels. The emergence of new technology and need for a global business
made the cashless transactions more popular. There were various methods of cashless
transactions that were frequently used, but due to the economic advancements the need for
other faster and reliable methods has motivated many entrepreneurs and economist to
introduce reliable and easy to use methods of cashless transaction.

CASHLESS TRANSACTION SYSTEMS

Cashless transaction is a process of buying goods and services against money where there is
no physical currency is involved. The physical currency is replaced by a number of methods
that are powered by digital information technology and are capable to transfer money from
one person’s bank account to another person’s. All these money transfer 3 methods have their
own, features, qualities, and mechanisms that work together with other devices or
equipments; therefore they are termed as “systems”.

As for any trading activity, the issue of safe and reliable money exchange between
transacting parties is also essential. In a cashless environment, payments take the form of
money exchange in an electronic form which makes it safe and reliable. Merchant sells the
goods to customer and customer pays the price with the help of cashless methods with safety
and reliability where as in offline world the payments are made with cash or through cheque
that may be counterfeited. There are many reasons behind the people’s choice to do cashless

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transactions like convenience, improved and trusted digital technology, need to acquire things
faster and cheaper along with maintaining a track record for the taxation purposes. The credit
and Debit cards were the most common for cashless transactions in India like other countries
but a shift in the demand and after the historical decision of demonetization taken by the Hon
Prime Minister of India “Mr. Narendra Modi” boosted other methods of cashless transaction.
The shifting paradigm gave a new height to the cashless transactions in the country and also
influenced consumers and their perception towards these methods of transaction.

METHODS OF CASHLESS TRANSACTION

Clumsy and expensive to handle coins and notes are replaced by efficient electronic
payments initiated by various types of plastic cards that have a tantalizing prospect for the
twenty-first century. There are various cashless transaction methods such as follws:-

1. Cheque
The cheque is one of the oldest methods of cashless payment. It is a known method to
everyone. In this method, you issue a cheque for the specific amount to someone else. The
cheque gets deposited in the respective bank. The bank processes a payment through a
clearing [Link] entire transaction done through cheque gets recorded and there is a proof of
payment. However, there are instances wherecheque payments get dishonored due to
signature mismatch or insufficient fund. In order to avoid such issue, we can use other
cashless payment options.

2. Demand Draft
Demanddraft is another rudimentary way of cashless transaction. It is safest option to receive
payment from anyone. Demand draft (DD) never gets defaulted as it is signed by the banker.
The disadvantage of DD and cheque is you need to visit a bank in order to deposit cheque
and demand draft. The clearance of cheque or DD takes additional time.

[Link] Transfer – NEFT or RTGS

The third simplest method for the cashless transaction is online transfer using NEFT or
RTGS. In order to do online money transfer, you need internet banking facility. Online
transfer using NEFT or RTGS is comparatively faster than cheque or DD. Online transfer
can be done from anywhere using internet facility.

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4. Credit Card or Debit Card
Credit card or debit card is another cashless payment method. The usage of credit card and
debit card was limited in India. However, usage of credit card and debit card is increasing
now because of demonetization. The limitation of this payment method is an availability of
swipe card facility
(PoS) atmerchant end.

5. E-Wallets
E-Wallet is next cashless payment option. E-Wallet can be used to purchase products starting
from grocery to airline tickets. In order to use E-Wallet customer and merchant, both require
a smartphone with active internet connection. The most popular example or E-Wallet is
PayPal. After registering for E-Wallet you need to link your credit card or debit card with
your E-Wallet id. You can use EWallet for fund transfer or online shopping. It is simplest
cashless method.

6. Mobile Wallets
The next cashless payment method is a mobile wallet. You do not need a debit card, credit
card or internet banking password for making payment using a mobile wallet. Just load
money in your wallet via IMPS and use it on the move. You can download mobile wallet app
from play store. Fewexamples of mobile wallets are Paytm, PayUmoney, MobiKwik, etc.

7. UPI Apps
UPI is a mobile payment system which allows you to do various financial transactions on your
smartphone. UPI allows you to send or receive money using virtual payment address without
entering bank information. Merchants can enroll with banks to accept payments using UPI.
Like in the case of a PoS machine, the merchant would require a current account with a bank
to accept UPI payments. The examples of few UPI Apps are SBI Pay, Union Bank UPI
App,
Phonepe, etc.

8. Gift Card
The next cashless payment method is a gift card. Gift card is a readymade card and can be
purchased from a merchant or from the bank. The gift card is loaded with a fix cash amount
you can purchase any item from the specific vendor by using a gift card.

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9. Aadhaar Enabled Payment System
Aadhaar Enabled Payment System (AEPS) is one of the best cashless payment methods.
AEPS is like Micro ATM it uses smartphone and a finger-print scanner for the transaction. In
order to use this facility, it is mandatory to link your Aadhaar card to your bank account. You
canuse AEPS in order to perform transactions like Aadhar to Aadhaar fund transfer, Cash
withdrawn, Cash deposit, etc.

10. Unstructured Supplementary service Data

You can use USSD cashless option if you don’t have a smartphone or internet connection.
UnstructuredSupplementary Service Data is mobile banking service. From any mobile
phone, you can dial *99# and use this service. You can do all these things which are
available to a person with smartphone and internet connection. Almost including SBI, ICICI,
BOB, Axis Bank and PNB supports USSD payment option.

Advantages of cashless transactions

There are several reasons why the government and the RBI brings up measures to promote
cashless transaction economy. Besides convenience, digital transaction gives more scope for
recording of transactions and in this way it is
a first step against the spread of unaccounted money or black money. econdly, the problem
of counterfeit notes can also be avoided when payment is settled digitally.

Convenience
The ease of conducting financial transactions is probably the biggest motivator to go digital.
You will no longer need to carry wads of cash, plastic cards, or even queue up for ATM
withdrawals. It’s also a safer and easier spending option when you are travelling. The
benefits are enormous if you leave out the low-income group, which will face a huge challenge.
For the rest of the country, it is constructive and simple. It will be especially useful in case of
emergencies. The freedom to transact whenever and wherever you want. You don’t have to
be physically present to conduct a transaction or be forced to do so only during office hours.

Discounts
The recent waiver of service tax on card transactions up to Rs 2,000 is one of the incentives
provided by the government to promote digital transactions. This has been followed by a

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series of cuts and freebies. It’s a good time to increase your savings if you take advantage of
these. For instance, 0.75% discount on digital purchase of fuel means that the petrol price
in Delhi at Rs 63.47 per litre can be brought down to Rs 62.99/l with digital payment.
Similarly, saving on rail tickets, highway toll, or purchase of insurance can help cut your
costs. Add to these the cashback offers and discounts offered by mobile wallets like Paytm,
as well as the reward points and loyalty benefits on existing credit and store cards, and it
could help improve your cash flow marginally.

Tracking spends
If all transactions are on record, it will be very easy for people to keep track of their
spending. It will also help while filing income tax returns and, in case of a scrutiny, people
will find it easy to explain their spending. Besides the tax, it
will have a good impact on budgeting.

Budget discipline
The written record will help you keep tabs on your spending and this will result in better
budgeting. Various apps and tools will help people analyse their spending patterns and
throw up good insights over a couple of years. Controlled spending could also result in
higher investing. If the same amount of cash does not flow back into circulation and people
continue to use mobile wallets and cards, it is also likely to bring down the latte factor. This
means that the Rs 10 you spent on candy or chips, or that regular cup of coffee office is
likely to take a hit since you will be short of loose change and smaller currency notes.
There’s a lesser chance of budgetary leaks and unaccounted for spends sneaking into your
budget at the end of the month.

Lower risk
If stolen, it is easy to block a credit card or mobile wallet remotely, but it’s impossible to get
your cash back. “In that sense, the digital option offers limited security,” says Pai. This is
especially true while travelling, especially abroad,where loss of cash can cause great
inconvenience. Besides, if the futuristic cards evolve to use biometric ID (finger prints, eye
scan, etc), it can be extremely difficult to copy, making it a very safe option.

Small gains

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It may not seem like much of an advantage, but being cashless makes it easy to ward off
borrowers. Another plus is that you can pay the exact amount without worrying about not
having change or getting it back from shopkeepers.

Disadvantages of cashless transactions

Higher risk of identity theftThe biggest fear is the risk of identity theft. Since we are
culturally not attuned to digital transactions, even well-educated peoplerun the risk of falling
into phishing traps. With the rising incidence of online fraud, the risk of hacking will only
grow as more people hop on to the digital
platform. Besides, the latest move by the government to remove the two-factor authentication
process for online transactions up to `2,000, will not help. Irrespective of the size of
transaction, the absence of this additional layer of security will expose thousands to the risk of
identity theft. Another weak link is the inadequate redressal mechanism. With the poor
redressal system in India, imagine what a poor rickshaw puller will do if he has his Aadhaar
ID stolen? Given the tedious process and poor grievance redressal, people will have no easy
recourse if they lose money online. There is no stringent legal process to deal with this kind or
scale of fraud. Add to it the mass identity theft from banks’ or companies’ databases and it
can turn into a financial nightmare akin to the data breach in the Indian banking system in
October this year.

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 CHAPTER 4

Data Analysis and Interpretation

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The primary data relating to the study were collected from the users cashless transactions in
tirur taluk. The details of analysis and its interpretation are shown in the following tables.

I Profile of Respondents

The analysis of the general questions related to age, gender, marital status, occupation
etc. reveals the following.

1. Age wise Classification of Respondents

Table 4.1

Age wise Classification of Respondents

Age Number of Respondents Percent

Below 20 14 23.3
20-30 43 71.7
30-40 3 5.0
Total 60 100.0
Source: Primary Data

Figure 4.1

The analysis of the data shows that more number of respondents are in the age group of 20-30
(71 percent of total sample). On the other hand, number of respondents in the age group of
30-40 is only 5 percent.

2. Gender based classification of respondents

Table 4.2

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 Gender wise Classification of Respondents

Gender Number of Respondents Percent

Female 19 31.7
Male 41 68.3
Total 60 100.0
Source: Primary Data

Out of the total respondents 41 were male respondents and 19 female respondents. i.e, 68
percent of the sample consists of male respondents and 32 percent female respondents.

3. Education wise Classification of Respondents

Table 4.3
Education wise Classification of Respondents

Education Number of Respondents Percent

+2 10 16.7
Diploma 1 1.7
Degree 41 68.3
PG 8 13.3
Total 60 100.0
Source: Primary Data

From the above table and graph 68 percentage of users are educated at degree level and 17
percent users are at +2 education, 13 percent users are at PG level and 2 percent users at
diploma level,

4. Occupation wise Classification of Respondents

Table 4.4
Occupation wise Classification of Respondents

OCCUPATION

Education Number of Respondents Percent

Student 46 76.7

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 Private employee 9 15.0
Self employee 4 6.7
Govt employee 1 1.7
Total 60 100.0
Source: Primary Data

Figure 4.2

77 percent of users are student and 15 percent of users are private employees, and 7 percent
of usres are self employed and 2 percent of the users are government employed.

5. Income wise Classification of Respondents

Table 4.5
Income wise Classification of Respondents

Monthly income Number of Respondents Percent

upto 5000 26 43.3
5000-10000 7 11.7
10000-20000 18 30.0
20000-30000 3 5.0
Above 30000 6 10.0
Total 60 100.0
Source: Primary Data

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 Figure 4.3

Here, 43 percent of users are in the group of upto 5000 rupees per month, 30 percent of users
are in the group of 10000-20000, 12 percent of users are in 5000-10000 income group, 10
percent of users are in the group of above 30000 per month, and 5 percent of users are in the
group of 20000-30000.

II Frequency on usage of banking services per month

 Branch Banking

Table 4.6

Usages of Branch Banking

Number of Respondents Percent

NILL 20 33.3
1-3 Times 30 50.0
3-8 Times 5 8.3
8-12 Times 1 1.7
Over 12 Times 4 6.7
Total 60 100.0
Source: Primary Data

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 Figure 4.4

50 percent of users are visiting bank branches 1-3 times per month and 33 percent of users
not visiting branch atleast once in a month and 7 percent users are visiting bank branches
over 12 times per month.

 ATM

Table 4.7

Usages of ATM

Number of Respondents Percent

NILL 3 5.0
1-3 Times 28 46.7
3-8 Times 21 35.0
8-12 Times 5 8.3
Over 12 Times 3 5.0
Total 60 100.0

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 Figure 4.5

46 percent of users are visiting ATM 1-3 times per month, 35 percent of users are visiting
ATM 3-8 times per month,5 percent of users not visiting ATM and another 5 percent using
ATM over 12 times per month.

 Internet Banking

Table 4.8

Usages of Internet Banking

Number of Respondents Percent

NILL 11 18.3
1-3 Times 19 31.7
3-8 Times 19 31.7
8-12 Times 4 6.7
Over 12 Times 7 11.7
Total 60 100.0

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 Figure 4.6

32 percentage of users are using internet banking 1-3 times per month and 3-8 times per
month, and 7 percent of users are using internet banking on 8-12 times per month.

 Tele banking

Table 4.8

Usages of Internet Banking

Number of Respondents Percent

NILL 35 58.3
1-3 Times 14 23.3
3-8 Times 2 3.3
8-12 Times 6 10.0
Over 12 Times 3 5.0
Total 60 100.0
Source: Primary Data

59 percentage of cassles payment users are not using Tele banking, 23 percentage of users are
using 1-3 times per month, and 5 percent of users are using tele banking over 12 times per
month.

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  Mobile Banking

Table 4.9

Usages of Mobile Banking

Number of Respondents Percent

NILL 8 13.3
1-3 Times 21 35.0
3-8 Times 13 21.7
8-12 Times 10 16.7
Over 12 Times 8 13.3
Total 60 100.0
Source: Primary Data

Figure 4.7

35 percent of users are using mobile banking 1-3 times per month and 22 percent users using
mobile banking 3-8 times per month, 17 percent users using mobile banking 8-12 times per
month, 13.3 percentage users not using mobile banking and using over 12 times per month

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 III. Percentage of cashless payment of users
Table 4.10

Number of Total No. of Percent(a/b)

Respondents(a) Respondents(b)
ATM 48 60 80.0
Mobile Banking 31 60 51.6
Net Banking 19 60 31.6
Debit / Credit Card 34 60 56.6
Digital Wallet 15 60 25.0
NEFT 16 60 26.6
RTGS 7 60 11.6
POS 6 60 10.0
Source: Primary Data

Figure 4.8

Out of 60 respondents 48 respondents using ATM service i.e. 80 percent, and 57 percent of
users using Debit and credit cards form payment methods and only 10 percentage of users
using POS machines for payment.

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 IV. Ranking medias providing awareness regarding cash less transaction

Table 4.11

Rank
TV 1
Newspaper 2
Advertisement 3
Internet 4
Social media 5
Source: Primary Data

Here ranking the medias providing awareness to the users, It results that Television(TV) is
the first rank, Newspaper on second rank , Advertisement on third rank, Internet on fourth
rank, Social media on Fifth rank from 60 respondents.

V. Ranking of cashless transactions’ benefits

Table 4.12
Ranking of benefits

Fully Partly Not Total Weighted Rank

aware aware aware Average
3 2 1

Easy and save time 51 8 1 170 12.4 1

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 Lower Risk 25 31 4 141 10.2 3
Secure Privacy 21 31 8 133 9.7 4
Control Black Money 17 27 16 121 8.8 7
Control the corruption 22 26 12 130 9.4 5
Transparency and 30 20 10 140 3
Accountability 10.2
Safety 28 28 4 144 10.5 2
Control illegal 29 22 9 140 3
Activities 10.2
Prompt Settlement 26 18 16 130 9.4 5
Increase the Tax Base 22 23 15 127 9.2 6

Source: Primary Data

Figure 4.9

The main benefits while using cashless transaction is easy and saves time it ranked 1, and
awared about the benefits on Safety ranked 2 and rank 7 control black money the last rank in
this Table

VI. Ranking level of satisfaction

Ranking level of satisfaction for the statements statement

Table 4.13

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 HS S N D HD Total Weighted Rank
5 4 3 2 1 Average

Account to Account 35 21 4 0 0 1
transfer 271 27
Statement request( by 15 28 17 0 0 4
email, fax, mail) 238 23.8
SMS alerts about specific 18 29 12 1 0 3
information
to the bank services / new
products 244 24.4
Online Transactions status 27 19 12 0 2 249 24.8 2
Source: Primary Data

Figure 4.10

Here, Account to account transfer ranked 1, Online Transactions status ranked 2, SMS alerts
about specific information to the bank services / new products ranked 3, Statement
request( by email, fax, mail) ranked 4 .

VII. Ranking of Problems

Problems faced the cashless transaction

Table 4.14

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 Problems Number of Weighted Rank
respondents average

ATM Machine out of cash 51 12.8 1

Non printing of ATM statement 32 8.0 8

Not providing payment information 25 6.3 10

Not giving fast response 35 8.8 5

Lack of security in transactions. 23 5.8 11

Lack of appropriate software. 34 8.5 6

Lack of Security and Safety 27 6.7 9

Cyber Crime 33 8.3 7

Hacking Problems 36 9.0 4

Problem of Internet connection 42 10.5 3

Charges of Online Transaction 43 10.8 2

Illiteracy 18 4.5 12

Source: Primary Data

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 Figure 4.11

From the above table it shows that ATM Machine out of cash is the
most important problem faced by the users, other major problems are Charges of Online
Transaction, Problem of Internet connection, Hacking Problems, Not giving fast response,
Lack of appropriate software.

VIII. Contribution of new technology in the succession of banks

This analysis is done by The result of the cross tabulation on Age, Gender, Education,
Occupation, Monthly Income.

Cross Tabulation on Age

Table 4.15

Age contribution of new technology to the success of banks Total

Average High Very high
Below 20 0 8 6 14
20-30 4 21 18 43

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 30-40 1 2 0 3
Total 5 31 24 60
Source: Primary Data

Figure 4.12

In the above table shows that the cross tabulation Result of Age groups, 21 respondents from
20-30 catogories are placed high and other 18 on the same category placed very high on
contribution of new technology to the success of banks.

Cross Tabulation on Gender

Table 4.16

Gender contribution of new technology to the success of banks Total

Average High Very high
Female 2 12 5 19
Male 3 19 19 41
Total 5 31 24 60
Source: Primary Data

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 Figure 4.13

19 respondents from Males are marked high and very high contribution on new technology
by banks, And only 2 female Respondent marked average in the new technology.

Cross Tabulation on Education

Table 4.17

Education contribution of new technology to the success of banks Total

Average High Very high
+2 0 6 4 10
Diploma 0 1 0 1
Degree 4 19 18 41
PG 1 5 2 8
Total 5 31 24 60
Source: Primary Data

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 Figure 4.14

19 respondents from College students Marked high success rate and 18 respondents rated
very High, al most all the classes users are in the opinion of high or very high success rate.

Cross Tabulation on Occupation

Table 4.18

Occupation contribution of new technology to the success of banks Total

Average High Very high
Govt employee 0 1 0 1
Private employee 1 5 3 9
Self employee 0 2 2 4
Student 4 23 19 46
Total 5 31 24 60
Source: Primary Data

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 Figure 4.15

Out of 46 respondents from students 23 are rated high success, and 19 are rated very high and
private employers not rated average in the success.

Cross Tabulation on Monthly income

Table 4.19

Monthly income contribution of new technology to the success of banks Total

Average High Very high
upto 5000 2 16 8 26
5000-10000 0 3 4 7
10000-20000 2 6 10 18
20000-30000 0 2 1 3
Above 30000 1 4 1 6
Total 5 31 24 60
Source: Primary Data

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 Figure 4.16

Income level up to 5000 are rated 16 on high succession new banking technology, and 10
respondents from income between 10000-20000 are rated Very high on 18 respondents from
the category.

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 CHAPTER 5
SUMMERY OF FINDINGS, SUGGESTIONS AND
CONCLUSION

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FINDINGS

 71 percentage of respondents are in the age group of 20-30.

 68 percent of the sample consists of male respondents.
 77 percent of Respondents are student.
 43 percent of users are in the group of upto 5000 rupees per month.
 50 percent of users are visiting bank branches 1-3 times per month.
 46 percent of users are visiting ATM 1-3 times per month.
 5 percent using ATM over 12 times per month.
 59 percentage of cassles payment users are not using Tele banking.
 35 percent of users are using mobile banking 1-3 times per month.
 Out of 60 respondents 48 respondents using ATM service.
 10 percentage of users using POS machines for payment.
 Television(TV) is the first rank on the medias providing awareness to the users.
 The main benefits while using cashless transaction is easy and saves time it ranked 1
on benefits, rank 7 control black money the last rank from the respondents.
 Users are Highly satisfaction on Account to account transfer.
 ATM Machine out of cash is the most important problem faced by the users others
majors are charges, internet problem.
 Age group 20-30 are have positive impact on new technology in banking, respondents
from College students Marked high success rate on new banking technology.

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 SUGGESTION

 Bank should focus on ATM services because it is the most used service and lot of
problems faced by customers on high rate.
 Promote more for digital payment transaction for increase customers on banking,
and for reduce branch visit.
 Provide high bandwidth software and not make any errors
 Provide more Advertisement about cashless transactions on medias.

CONCLUSION

Cashless payment is the best way for the banking users to do banking functions easily
within the office or home. Now many of the rural banking are promoting digital
banking. If the process are simplified for payment and any one uses the cash less
payment any people can travel or make payment without carrying cash on pokets, also
the balance saving amount held in the hands will be in banks. It helps to promote
development of nation. In this project shows benefits and problem faced by the users
by this we can suggest changes in banking sectors services on cashless Transactions.

BIBLIOGRAPHY

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BOOKS
 Beitrage Zur Wirtschafts- Und Sozialgeschichte (2008) Cashless Payments and
Transactions from the Antiquity to 1914, Franz Steiner Verlag Wiesbaden Gmbh
publishers, ISBN-10: 3515092595
 Kothari C.R (2007) “Research Methodology-Methods and techniques” New Age
International Pvt. Ltd. Publishers.
 Gupta S.P. (2002), “Statistical Methods” Sultan Chand and Sons
WEBSITES
 [Link] -
go-cashless/articleshow/[Link]
 [Link]
transactions
 [Link]
methods cashless-india/
 [Link]
methods
 [Link]
 [Link]

ARTICLES

 Dixit R, [Link]. (2017) -A Study on Adoption of Mobile Wallet for Cashless Economy
 Yu (2012)- Factors affecting individuals to adopt Mobile Banking
 Dr. Thomas (2016) -Driving Financial Inclusion in India
 Dr. Shilpa(2018)- Moving Towards Cashless India
 Chen (2008) -A model of consumer acceptance of mobile payment

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 ANNEXURE

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Name:

Age:

Gender: Male Female

Education: SSLC Plus Two Degree PG Diploma

Illiterate

Occupation: Govt employee Private employee Self

employee Unemployed Student

Monthly income: upto 5000 5000-10000 10000-20000

20000-30000 Above 30000

1. How frequently do you use the following banking services per month?

SERVICES NILL 1-3 3-8 8-12 Over 12

times times times times
A. Branch Banking

B. ATM

C. Internet Banking

D. Tele Phone banking

E. Mobile banking

2. Mention your usage of cash transactions methods

RTGS

NEFT

Debit/Credit card

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 ATMs

Mobile banking

Net banking

POS

Digital wallets

3. Indicate the source of your awareness regarding cash less transactions

(Rank 1 to 5)

TV

News paper

Internet source

Advertisement

Social media

4. Indicate your level of awareness of benefits of cash less transaction

Fully Partly Not

aware aware aware

Easy and save time

Lower Risk

Secure Privacy

Control Black Money

Control the corruption

Transparency and
Accountability

Safety

Control illegal
Activities

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Prompt Settlement

Increase the Tax Base

5. Indicate your level of satisfaction in the below statement by using cashless payment:

Highly Satisfied Neutral Highly Dissatisfied

satisfied Dissatisfied

Account to Account transfer

Statement request( by email,

fax, mail)

SMS alerts about specific

information
to the bank services / new
products

Online Transactions status

6. Problems faced by the cashless-payment beneficiaries?

Problems Yes No

ATM Machine out of cash

Non printing of ATM statement

Not providing payment information

Not giving fast response

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Lack of security in transactions.

Lack of appropriate software.

Lack of Security and Safety

Cyber Crime

Hacking Problems

Problem of Internet connection

Charges of Online Transaction

Lack of Infrastructure

Illiteracy

7. The contribution of new technology to the success of banks in your

opinion is:

Very high High Average Low very low

Thank You

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