Demonetization and Digitization

Sumit Agarwal, Debarati Basu, Pulak Ghosh, Bhuvanesh Pareek, Jian Zhang

    Research output: Contribution to conferenceConference paperpeer-review


    Using large datasets from four diverse sources, of both suppliers and facilitators or recipients of digital payment platforms, we conduct a comprehensive analysis of the impact of unexpected demonetization in India on payment digitization. The drying-up of cash due to demonetization leads to a significant increase in the level of payment digitization and the rise applies to both traditional and non-traditional digital payment modes -- cards and e-wallets. The usage pattern persists even during the re-monetization period when cash makes a comeback in the economy, indicating the success of demonetization in enabling new digitization technologies to make inroads into consumer payment habits. Heterogeneity tests reveals that regions that are underdeveloped economically, lag in financial inclusion and technology infrastructure and have a population with more conservative demographic characteristics experience a weaker digitization response.
    Original languageEnglish
    Number of pages57
    Publication statusPublished - 11 Jul 2019
    EventChina International Conference in Finance, CICF 2019 - Guangzhou, China
    Duration: 9 Jul 201912 Jul 2019


    ConferenceChina International Conference in Finance, CICF 2019
    Internet address

    User-Defined Keywords

    • Digitization
    • Payment Method
    • Demonetization


    Dive into the research topics of 'Demonetization and Digitization'. Together they form a unique fingerprint.

    Cite this