Measuring Cashless Economy Readiness: An Empirical Study of Digital Payments in India

DOI

No DOI

Published In

Volume 5, Issue 2 (2026)

Published Online

May-August 2026

Pages

1084-1086

Article Type

Original Article

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In recent times, the rapid evolution of digital technology has significantly impacted traditional payment systems, giving momentum to the creation of a cashless economy. Digital payment systems like mobile wallets, internet banking, debit/credit cards, and Unified Payments Interface (UPI) facilitate fast, secure, and effective financial transactions. This article attempts to explore the impact of digital payment systems on the creation of a cashless economy through a descriptive and analytical method of research based on secondary data from government reports, financial reports, and studies conducted by experts. This article proposes a new index called Cashless Economy Readiness Index (CERI), which takes into account technological preparedness, digital access, digital payment user base, and institutional preparedness. The findings reveal that there has been a steady increase in the number of people using digital payment systems, showing that people are gradually moving towards a cashless economy, indicating that India has been structurally transformed to create a cashless economy.