A Study on Imapct Of Upi Transaction and Cashless Economy with Reference to Coimbatore City

In the realm of Humanities, the study of the impact of UPI transactions and the transition to a cashless economy offers a unique perspective on how technology intersects with society, culture, and history. By delving into this subject, researchers can explore how digital payment systems like UPI shape human interactions, financial behaviours, and even ethical considerations within the broader context of Humanities IT. Analysing the implications of UPI on human experiences, values, and societal structures can provide valuable insights into the evolving relationship between technology and the human experience in the digital age. In recent years, the financial landscape in India has undergone a remarkable transformation, primarily driven by the rise of digital payment systems, with the Unified Payments Interface (UPI) leading the charge. Launched in 2016, UPI has revolutionized the way people conduct transactions by enabling instant money transfers through smartphones, thus reducing reliance on cash and traditional banking methods. This study aims to explore the multifaceted impact of UPI transactions on consumer behaviour, financial inclusion, and economic growth, while also addressing the challenges faced by those who remain dependent on cash.

REVIEW OF LITERATURE :

A Mahesh & Bhat G (2021) remarked that Due to consumers’ preference for contactless payments over alternative options, UPI had experienced impressive growth over the past two years. The survey found that the UPI platform’s retail payment sector has seen the most significant rise in digital payments.

Kumari D (2016), Her article shed light upon fundamental idea of cashless transactions &safety concerns. She claims as significance barrier to cashless transactions is inadequate infrastructure. According to a UNESCO report, one of the main obstacles to cashless transactions is illiteracy. According to the economic climate, one of the problems with cashless transactions is hacking.

Kumari and Krishna, Cashless Payment (2017): The research, "Cashless Payment: A Behaviour Change to Economic Growth.2017," analyses the impact that being cashless has on economies in transition. Based on the research presented in the article, a country's financial stability may improve if it adopts a cashless economy strategy. It seems that considerable progress has been made in raising public awareness of cashless economy while a sizable percentage of population is eagerly anticipating its implementation.

Ritika Bhat eatl (2020) UPI offers its users unquestionable benefits in the form of the amenities that are carefully covered in this article. The components in this study were identified and divided into two categories: adoption factors and trust factors, in order to comprehend the insights obtained from the replies received in our survey. The adoption factors are primarily associated with UPI's increasing customer demand, growing popularity, and decreased difficulties handling cash. On the other hand, the benefits UPI offers in terms of convenience, a consistent and positive transaction experience, a decrease in safety concerns, and numerous other areas, support the factors for trust.

Ashish Das and Rakhi Agarwal (2010), Cashless Payment System in India, a Technical Report, “The country needs to move away from cash-based towards a cashless payment system. This will help reduce currency management cost, track transactions, check tax avoidance, fraud etc, enhance financial inclusion and integrate the parallel economy with mainstream”.

Kolte D. M. & Dr . Humbe V. R., (2020) reveal that the most commonly used UPI/BHIM App is the 3rd Party Apps like Phone Pe. Narayanan J, (2021), remarked that the growth of UPI apps in India post-2020, its contribution to digitalization, the development of many fintech companies and startups, and the payment system’s two billion monthly transactions are astonishing in the digital payment industry.

J. Salomi Backia Jothi (2019), argued that UPI had become an efficient alternative to net banking with faster, easier and smoother technology for millions of people in India, and being a part of techno-economic development, youth has accepted this concept.

STATEMENT OF THE PROBLEM :

Despite the rapid adoption of the Unified Payments Interface [UPI ] in India , there remains a significant gap in understanding how its usage impacts individuals and traditional banking services. As UPI continues to facilitate seamless digital transactions , it is crucial to explore how this shift influences access to financial services , particularly for those who rely on cash transactions , access their effects on traditional banking and cash services , and evaluate how the transactions to a cashless economy is reshaping individuals access to financial resources .

OBJECTIVES OF THE STUDY :

• To identify the usage of UPI transactions.
• To assess the effects of UPI on traditional banking and cash services.

• To determine the cashless economy affects me access to financial services.

RESEARCH METHODOLOGY :

Research design

A research design defines the structure or framework within which the research is conducted. For this study, a descriptive research design has been adopted to assess customer satisfaction with the UPI transactions and cashless economy in Coimbatore. The objective is to provide a comprehensive understanding of the factors influencing satisfaction among the users of UPI .

Area of Study :

The study has been conducted in Coimbatore City, which represents a diverse range of consumers uses , and is a key value of cashless economy .

Sample Size :

The sample size adopted for this study is 150 respondents. This sample size is considered sufficient for drawing meaningful conclusions regarding customer satisfaction with UPI transaction and with cashless economy in Coimbatore city.

Primary Data :

The primary data has been conducted through the questioner from the customer. The questionnaire is designed in a systematic manner covering adequate and relevant questions which is useful to study.

Secondary Data :

The theoretical aspect of the study is collected from various sources which includes  journals, magazines, websites and other related projects.

Data Collection :

In this study, the researcher has used the questionnaire method for collecting relevant information. The data has been collected from the respondents using the questionnaire. Data collection is carried out in the month of August 2024.

LIMITATION OF THE STUDY :

  1. The study is focused on Coimbatore city, and thus, the findings may not be generalized to other regions or cities with different socio-economic profiles or infrastructural developments.

2. The study may only capture data over a limited time period, which might not fully reflect the long-term trends or impacts of UPI adoption on the cashless economy.

3. The study may not adequately account for the diverse economic disparities within Coimbatore, as different income groups may have different access to and use of digital payment systems.

Data Analysis And Interpretation :

This chapter deals with the analysis and interpretation of the study on the topic, “A Study On Imapct Of Upi Transaction And Cashless Economy With Reference To Coimbatore City”, is presented based on a sample of 160 respondents. This is collected data are classified and tabulated. The data are analysed using following statistical tools.

• Percentage Analysis
• Chi square Analysis

PERCENTAGE ANALYSIS

Percentage analysis is carried out for specific questions given in the questionnaire. This analysis describes the classification of the respondents falling under each category. The percentage analysis is used mainly for standardization and comparison.

Table 1 : How long UPI transaction using.

The age distribution of respondents shows that the largest group (35.6%) is aged 18 to 30 years, indicating this as the most active or engaged demographic. This is followed by 15 to 18 years (25%), showing significant participation among younger individuals. Those aged 31 to 40 years constitute 21.9%, while the smallest group, at 17.5%, is aged 45 years or older. This distribution highlights that younger and middle-aged individuals dominate the respondent pool, suggesting a focus on these age groups for activities or offerings, while the lower representation of older respondents may indicate lesser engagement or relevance for this demographic.

Table 2 : Gender.

The gender distribution of respondents is nearly balanced, with females slightly outnumbering males at 51.2% compared to 48.8%. This indicates a fairly even representation of both genders, suggesting that the subject of the study or survey is of interest to and engages both males and females almost equally, with a marginally higher participation from females.

Table 3 : Martial status

The marital status distribution shows that the majority of respondents (52.5%) are married, while 47.5% are unmarried. This indicates a relatively even split, with a slightly higher representation of married individuals. The data suggests that the survey or study appeals to both groups, with a slight inclination toward the married demographic.

Table 4 : Types of family.

The distribution of family types shows that a slight majority of respondents (53.1%) belong to nuclear families, while 46.9% are from joint families. This indicates a nearly balanced representation, with a marginally higher preference for nuclear family structures, reflecting contemporary trends toward smaller, independent family units while still maintaining a significant proportion of joint families.   

Table 5 : No. of members in family.

The data on family size shows that the majority of respondents (50.6%) belong to families with more than 3 members, followed by 35% in families of 3 members, indicating a preference for moderately sized or larger families. Smaller families with 2 members account for 13.1%, while single-member families are rare at 1.3%. This suggests that most respondents come from family-oriented households with a significant representation of larger family units. 

Table 6 : Residential area.

The distribution of residential areas shows that the majority of respondents reside in urban areas (37.5%), followed closely by those from semi-urban areas (35.6%), with a smaller proportion from rural areas (26.9%). This indicates that the respondent pool is primarily urban and semi-urban, reflecting greater engagement or accessibility in these areas, while rural representation, though significant, is comparatively lower.

Table 7 : Family income.