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