Volume : 8, Issue : 12, DEC 2022

AN UNDERSTANDING OF ADOPTION OF UPI BASED ON BEHAVIORAL ECONOMICS: A SECONDARY DATA ANALYSIS IN CHHATTISGARH AND CONTRIBUTIONS OF DIGITAL INDIA INITIATIVES

DR. SANJAY KUMAR SINGH

Abstract

The widespread adoption of digital payment systems in India at a very fast pace has revolutionized the financial space, with the Unified Payments Interface (UPI) being the most used and accepted platform. This study delves into the adoption of UPI in Chhattisgarh from a behavioural economics point of view, applying secondary data sources for analysis of usage patterns, trends in adoption, and the impact of psychological and socio-economic variables. The research also evaluates the impact of the Government of India's Digital India programmes on driving adoption of digital payments in semi-urban and rural areas of the state. Underpinned by such theories as bounded rationality, heuristics, nudging, and loss aversion, the analysis examines the role that behavioral biases play in influencing consumer choice in favor of or against the uptake of UPI.

Methodologically, the paper is based on secondary level datasets from the National Payments Corporation of India (NPCI), Reserve Bank of India (RBI), and Digital India progress reports. Qualitative methods have been used and Thematic analysis of all the secondary data has been done to know the relation between behavioral determinants, digital efforts, and UPI uptake. The research indicates that although UPI payments in Chhattisgarh have grown immensely after 2020, the gap remains between districts because of socio-economic, infrastructural, and cognitive impediments. Nudges from the government, including merchant incentives, public awareness campaigns, and enhanced digital infrastructure, have been instrumental in driving higher adoption rates.

The paper concludes that UPI adoption is not a technological change but a behavioral change which necessitates constant nudging and policy intervention. The paper provides policy implications for enhancing digital literacy, reaching rural people, and bridging the goals of financial inclusion with behavior design.

Keywords

UPI, BEHAVIORAL ECONOMICS, DIGITAL INDIA, CHHATTISGARH, SECONDARY DATA, ADOPTION, FINANCIAL INCLUSION.

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IESRJ

International Educational Scientific Research Journal

E-ISSN: 2455-295X

International Indexed Journal | Multi-Disciplinary Refereed Research Journal

ISSN: 2455-295X

Peer-Reviewed Journal - Equivalent to UGC Approved Journal

Peer-Reviewed Journal

Article No : 14

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