PROJECT REPORT

ON
“ADOPTION OF DIGITAL PAYMENTS AMONG SMALL CART
VENDORS IN UTTARAKHAND: BENEFITS AND CHALLENGES”

FOR THE PARTIAL FULFILMENT OF THE

DEGREE OF BACHELOR OF COMMERCE

SUBMITTED TO: SUBMITTED BY:

MRS. AASTHA ANAND PUSHPESH PANDEY
S.M.J.N (PG) COLLEGE B. COM VI SEMESTER
HARIDWAR, UTTARAKHAND UNIVERSITY ROLL NO: 362220135217
ENROLLMENT NO: SV22022098

S.M.J.N (PG) COLLEGE HARIDWAR

SRI DEV SUMAN UTTARAKHAND UNIVERSITY
(STATE UNIVERSITY)
BADSHAHITHAL, TEHRI (GARHWAL), UTTARAKHAND
2022-2025

1
 ACKNOWLEDGEMENT
This competition of a difficult task. The researcher faces number of problems in course
of investigation and giving it a final shape. The task however, become simple and
smooth it the individuals gets cooperation and guidance from various related quarters.
The very fact that present study has been able to take a concrete shape shows the
amount of cooperation.
First of all, my thankfulness to God, who give me this opportunity and give blessings to
me every time.
I would like to acknowledge my thankfulness to my teachers Dr. (Mr.) M.M Gupta, Dr.
(Mr.) T.S Tomar, Dr. (Mr.) Manoj Kumar Sohi, Dr. (Mr.) S.K Chauhan, Dr. Mrs. Geeta
Shah, Mrs. Rinkal Goel, Mrs. Richa Minocha, Mrs. Kavita Chhabra, Mr. Ankit Bansal,
Mr. Vivek Mittal, Mrs. Aastha Anand, Mr. Vaibhav Batra. I also wish to acknowledge
help provided by library of S.M.J.N (PG) college.
I greatfully acknowledge my deep sense of gratitude to my project guide Mrs. Aastha
Anand S.M.J.N (PG) college (Haridwar) Uttarakhand for his valuable guidance,
supervision and cooperation right from the beginning of the idea to work on the subject
to its completion.

Date: Pushpesh pandey

Place: Haridwar Roll no: 362220135217
Enrollment no: SV22022098

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 CERTIFICATE

This is to certify that this project work titled

“ADOPTION OF DIGITAL PAYMENTS AMONG SMALL CART
VENDORS IN UTTARAKHAND: BENEFITS AND CHALLENGES”
has been completed by Pushpesh Pandey of class B. COM VI
semester 2022–25 and as per the information and declaration given by the
candidate, this is his own effort in my belief.

MRS. AASTHA ANAND

Date:
S.M.J.N (PG) COLLEGE
Place: Haridwar HARIDWAR, UTTARAKHAND

3
 DECLARATION
I hereby declare that the project report titled, “ADOPTION OF DIGITAL
PAYMENTS AMONG SMALL CART VENDORS IN UTTARAKHAND:
BENEFITS AND CHALLENGES” is submitted by me to S.M.J.N (P.G.)
College Haridwar, for the fulfillment of the degree of Bachelor of Commerce.

I further declare that this project report or any part thereof has not been
submitted previously to any university for the award of a degree or diploma or
title or recognition before and that it represents the original work done by me.

Date:
Pushpesh Pandey
Place: Haridwar
Roll No: 362220135217
Enrollment No. SV22022098

4
 INDEX
TOPIC PAGE NO

1. INTRODUCTION……………………………………………….6
2. LITERATURE REVIEW……………………………………….19
3. RESEARCH METHODOLOGY……………………………….27
4. DATA ANALYSIS AND INTERPRETATION…………….….31
5. FINDINGS AND SUGGESTIONS……………………………..46
• CONCLUSION………………………………………………….49
• REFERENCES…………………………………………………..62
• ANNEXTURE: QUESTIONNAIRE …………………………...65

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 CHAPTER -1
INTRODUCTION

6
INTRODUCTION
The digital payments landscape in India has undergone a remarkable
transformation over the last decade, emerging as a global benchmark for
innovation, scale, and financial inclusion. Central to this revolution is the
National Payments Corporation of India (NPCI), established in 2008 as an
umbrella organization to develop and manage the country’s retail payment and
settlement systems. NPCI has introduced pioneering platforms such as Unified
Payments Interface (UPI), RuPay, Immediate Payment Service (IMPS), Bharat
Bill Payment System (BBPS), and Aadhaar-enabled Payment System (AePS),
which have collectively redefined how individuals and businesses transact.
In Haridwar-a city renowned for its spiritual, cultural, and economic vibrancy-
the adoption of digital payment systems has become increasingly significant.
With millions of residents, tourists, and pilgrims interacting daily, seamless
and secure payment mechanisms are essential for supporting local commerce
and enhancing user convenience. NPCI-driven solutions have enabled instant,
cashless transactions, reducing dependency on physical currency and
improving transparency in financial dealings.
The exponential growth of digital payments in India is evident in the surge
from 162 crore transactions in FY 2012-13 to over 16,000 crore by FY 2023-
24, with UPI alone accounting for the majority of this volume. This growth is
propelled by factors such as widespread smartphone usage, increasing internet
penetration, government initiatives like the DigiDhan Mission, and the
continuous innovation by NPCI. In Haridwar, these trends are mirrored in the
expanding acceptance of QR codes, mobile wallets, and contactless payments
across sectors ranging from retail and hospitality to transportation and religious
offerings.
However, despite the progress, challenges remain. A significant proportion of
the population, especially in semi-urban and rural pockets, still lacks digital
literacy or access to reliable internet, which can hinder the full realization of a

7
cashless economy. NPCI’s ongoing efforts to promote financial inclusion,
standardize payment systems, and enhance security are crucial in addressing
these gaps and building trust among users.
This project aims to assess the current status, impact, and challenges of digital
payment systems in Haridwar, with a special focus on NPCI’s role. By
analyzing adoption patterns, stakeholder experiences, and infrastructural
readiness, the study seeks to provide actionable insights for policymakers,
financial institutions, and local businesses to further strengthen the digital
payments ecosystem in the city and contribute to India’s broader vision of a
digitally empowered society.
The National Payments Corporation of India (NPCI) was established in 2008
as a not-for-profit entity under the guidance of the Reserve Bank of India (RBI)
and the Indian Banks’ Association (IBA), with the primary objective of
creating a robust, efficient, and inclusive payments and settlement
infrastructure for the country. Over the years, NPCI has emerged as the
backbone of India’s digital payments revolution, introducing a range of
innovative products such as UPI, IMPS, RuPay, AePS, and Bharat BillPay.
These platforms have not only simplified transactions for individuals and
businesses but have also played a crucial role in promoting financial inclusion
by making digital payments accessible in both urban and rural areas.
NPCI’s approach is built on the principles of standardization, innovation, and
security. By offering interoperable and real-time payment solutions, NPCI has
ensured that users can transfer funds, make purchases, and pay bills seamlessly
across different banks and platforms. The launch of RuPay, India’s indigenous
card network, has been particularly significant, providing a cost-effective
alternative to international card schemes and supporting the government’s
vision of self-reliance in financial services. Similarly, the introduction of e-
RUPI, a contactless and purpose-specific digital voucher, showcases NPCI’s
commitment to leveraging technology for targeted and secure benefit delivery.

8
In Haridwar, the adoption of NPCI-powered digital payment systems is
transforming the local economy. Merchants, transport operators, hotels, and
even religious institutions are increasingly accepting digital payments, which
enhances transparency, reduces cash handling risks, and offers convenience to
both residents and the large influx of tourists and pilgrims. The city’s embrace
of QR codes, UPI payments, and RuPay cards reflects the broader national
trend toward a less-cash economy, while also addressing the unique
transactional needs of a diverse and dynamic population.
Despite these advancements, certain challenges persist, such as digital literacy
gaps, intermittent internet connectivity in some areas, and concerns around
transaction security. NPCI continues to address these issues through ongoing
partnerships with banks, payment service providers, and government agencies,
focusing on awareness campaigns, technological upgrades, and enhanced
security protocols. As Haridwar and other cities further integrate digital
payments into daily life, NPCI’s role remains central in shaping a secure,
inclusive, and innovative financial ecosystem for the future.
OVERVIEW OF DIGITAL PAYMENT SYSTEM IN HARIDWAR
The digital payment ecosystem in Haridwar reflects the broader transformation
underway across India, where digital transactions have become an essential
part of daily life. Over the past decade, India’s payment landscape has shifted
dramatically from cash-dominated transactions to a robust digital framework
powered by innovations like UPI, IMPS, and digital wallets. This change has
been driven by government initiatives, regulatory support from the Reserve
Bank of India (RBI), and the pioneering work of the National Payments
Corporation of India (NPCI).
In Haridwar, a city renowned for its religious significance and vibrant tourism,
digital payments play a crucial role in supporting local commerce. The influx
of millions of pilgrims and tourists each year has accelerated the adoption of
contactless payments, QR code-based transactions, and mobile wallets.

9
Merchants, hotels, transport operators, and even religious institutions are
increasingly accepting digital payments, which has enhanced transparency,
reduced the risks associated with cash handling, and provided convenience to
both residents and visitors.
The variety of digital payment options available in Haridwar mirrors the
national bouquet of services. Consumers can use UPI for instant money
transfers, IMPS for real-time interbank payments, Bharat BillPay for utility bill
payments, and RuPay cards for card-based transactions. The integration of
these systems has made it possible for even small vendors and street-side shops
to accept digital payments, bridging the gap between traditional commerce and
the modern digital economy.
Safety and security remain central to the digital payment ecosystem. Multi-
factor authentication, tokenization of card details, and robust regulatory
frameworks ensure that transactions are secure and user data is protected. The
RBI and NPCI have introduced measures such as e-mandate controls and
additional authentication factors to further safeguard consumers against fraud
and cyber threats.
Despite these advancements, challenges persist in Haridwar, as in other parts
of India. Digital literacy gaps, intermittent internet connectivity in certain
areas, and concerns about transaction security can hinder the widespread
adoption of digital payments. Surveys indicate that while a significant portion
of the population now uses digital payments, nearly 40% of adults in India still
do not, often due to lack of awareness or familiarity with digital platforms.
To address these issues, awareness campaigns like “Har Payment Digital” have
been launched, aiming to educate citizens about the benefits and safe usage of
digital payments. The government, banks, and fintech companies are working
together to expand digital infrastructure, improve user experience, and promote
financial inclusion in cities like Haridwar.

10
Looking ahead, the digital payment system in Haridwar is poised for further
growth. Continued innovation, regulatory support, and collaborative efforts
among stakeholders are expected to deepen the penetration of digital payments,
making transactions faster, safer, and more accessible. As Haridwar continues
to modernize, digital payments will remain a cornerstone of its economic and
social development, supporting the city’s unique blend of tradition and
progress.
IMPORTANCE OF NPCI AND DIGITAL PAYMENTS
• NPCI is the umbrella organization for retail payments in India, set up by
the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA)
to create a robust, efficient, and secure payment and settlement
infrastructure for the country.
• NPCI operates and manages key digital payment systems like UPI,
IMPS, RuPay, AePS, Bharat BillPay, and e-RUPI, making digital
payments accessible and convenient for all sections of society.
• NPCI’s innovations have made India a global leader in real-time digital
payments, with platforms like UPI processing over 14 billion
transactions in a single month and supporting instant, interoperable, and
secure transactions nationwide.
• NPCI products promote financial inclusion by enabling even small
merchants, rural users, and the unbanked population to participate in the
digital economy through affordable and easy-to-use payment solutions.
• Digital payments reduce dependence on cash, increase transparency, and
make transactions faster and more convenient for both individuals and
businesses.
• NPCI ensures security and standardization in digital payments, building
user trust and safeguarding against fraud through advanced technology
and regulatory compliance.

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 • Digital payments support government initiatives like Digital India and
financial inclusion, helping to bring more citizens into the formal
financial system and driving economic growth.
• NPCI’s ecosystem encourages innovation and collaboration among
banks, fintech companies, and merchants, continuously expanding the
reach and efficiency of digital payments in India.
• Special initiatives like e-RUPI and FASTag further simplify payments
for specific needs such as subsidies, tolls, and transit, making digital
payments a part of everyday life for millions.
CURRENT STATUS OF DIGITAL PAYMENT SYSTEM IN
HARIDWAR
The digital payment system in Haridwar has seen significant progress in recent
years, mirroring the nationwide surge in digital transactions. Haridwar, being
a major religious and tourist destination, has witnessed rapid adoption of digital
payments across various sectors, including retail, hospitality, transportation,
and even religious institutions. The presence of millions of visitors each year
has encouraged local businesses and service providers to embrace cashless
payment methods for convenience and [Link] from the National
Payments Corporation of India (NPCI) indicates that Haridwar’s digital
transaction volume is substantial, with an NFS (National Financial Switch)
approved ATM and card+PIN transaction volume of approximately 0.69
million in recent reporting periods. This figure reflects only a segment of total
digital transactions, as it does not include UPI, mobile wallets, or online
payments, which are even more widely used in urban and semi-urban parts of
the city.
UPI (Unified Payments Interface) has emerged as the most popular mode of
digital payment in Haridwar, consistent with the national trend where UPI
dominates transaction volumes and values. Merchants, street vendors, hotels,

12
and transport operators commonly display QR codes, making it easy for
residents and tourists to pay instantly using their smartphones. The use of
BHIM, RuPay cards, and AePS (Aadhaar Enabled Payment System) is also
growing, especially in government schemes and for direct benefit transfers.
The government has actively promoted digital payments in Haridwar through
awareness campaigns and initiatives like the DigiDhan Mission, aiming to
improve financial literacy and encourage cashless transactions. This has led to
increased acceptance of digital payments even among small businesses and in
rural pockets around the city. Aadhaar-based payments have also become
standard for schemes like MGNREGA, ensuring transparency and direct credit
of wages to beneficiaries’ accounts.
Despite these advancements, some challenges remain. A section of the
population, particularly in rural and older age groups, still prefers cash due to
limited digital literacy or concerns about transaction security. Occasional
issues with internet connectivity and technical glitches can also hinder
seamless digital transactions. However, ongoing infrastructure upgrades and
educational efforts are gradually addressing these barriers.
Overall, the current status of digital payment systems in Haridwar is robust and
expanding. The city is moving steadily toward a cashless economy, driven by
the widespread use of NPCI-powered platforms and increasing trust among
users. As digital infrastructure and awareness continue to improve, Haridwar
is well-positioned to further enhance its digital payment ecosystem in the
coming years.
THE DIFFERENT METHODS OF DIGITAL PAYMENT
SYSTEM
1. Plastic Cards- These are cards issued by banks to their account holder, by
using it they can withdraw money from any ATM by using their password.
These cards are used for depositing money in banks to so that there is less

13
wastage of paper. There are two type of cards issued by banks i.e. debit and
credit card. Debit cards are issued to all account holders whereas credit cards
are issued to the once according to their interests.
2. UPI -Unified Payment Interface is a payment mode this is used to make fund
transfers through the mobile app. One can transfer funds between two accounts
using UPI apps. One should have a registered mobile banking facility to use
UPI apps. Currently, this service is only available for android phone users.
3. Mobile Wallet - It’s the other way of storing or keeping digital cash and
using it for various transactions. A person can download any mobile wallets
namely Paytm, GPay, Phone pay, Sbi buddy, Jio money, etc. They just need to
link there bank account or their plastics cards number to use the amount
required and which is further used for making payments, paying bills etc.
4. Internet banking - There are various types of internet banking which are
NEFT(National Electronic Fund Transfer), RTGS(Real Time Gross
Settlement),ECS(Electronic Clearing System), IMPS(Immediate Payment
Service).These are e-banking system which allows individual or organisations
to make transfers using the website of their banks.
5. Mobile banking - It is provided by all banks to their customers where the
customers need to download the application of the bank and they cause it for
making transactions. For using such application on should have a smartphone.
There are many more types of digital payment available in our country and
across the globe we have talked about a few which are known to people.
THE BENEFIT OF DIGITAL PAYMENT SYSTEM
In a country like India, where disparities are sometimes poles apart, ensuring
financial equality becomes an issue of prime importance. One of the reasons
why our government started vocalizing Cashless Economy and Digital India
was to improve access to financial resources. There are multiple benefits that
digital payments bring to the table.
1. Ease and convenience - One of the most significant advantages of digital
payment is the seamless eience they provide to customers. Reduced

14
dependency on cash, fast transfer speed, and the ease of transacting make
online payments a preferred option. Traditional payment methods like cash and
cheques add to factors like risk, steps, and physical presence. With digital
payment, you can send and receive funds from anywhere in the world at the
click of a button.
2. Economic progress - Customers transact more online when they see the
ease, convenience, and security of online payments. This means that more and
more people feel comfortable buying online, investing digitally, and
transferring funds via electronic mediums. The increase in money movement
and online business contributes to the progress of the economy. This is why
online ventures are being launched every day and even more are making profits
daily.
3. Safety and efficient tracking - Handling and dealing in cash is a
cumbersome and tedious task. Along with the risk of losing money, there is the
hassle of carrying cash everywhere you go and keeping it safe. With digital
payments, one can keep their funds secured in online format effortlessly.
Nowadays, your mobile phone alone is enough to make and receive payments.
4. Speed and real-time processing – Transactions happen instantly or within
seconds, which improves cash flow and reduces waiting time compared to
traditional methods like cheques or cash.
5. Lower costs - Digital payments Reduce expenses by removing the need for
physical infrastructure, paperwork and manual handling. Transaction fees are
usually lower than those of traditional banking benefiting both businesses and
consumers

15
COMPANY PROFILE

National Payments Corporation of India (NPCI)

National Payments Corporation of India is an organisation created for
operating various retail payments and settlement systems in India. NPCI is an
initiative of the Reserve Bank of India (RBI) and Indian Banks’ Association
(IBA) under the provisions of Payment and Settlement Systems Act, 2007.
Through diverse FinTech innovations, the NPCI has contributed to India’s
existing payment ecosystem tremendously.
Founded in December 2008, the NPCI is a not-for-profit organisation
registered under Section 8 of the Companies Act 2013, established by the
Reserve Bank of India and Indian Banks' Association.
The organisation is owned by a consortium of major banks,[7] and has been
promoted by the country's central bank, the Reserve Bank of India. The NPCI
was incorporated in December 2008 and the Certificate of Commencement of
Business was issued in April 2009. The authorised capital has been pegged at
₹3 billion (US$40 million) and paid-up capital is ₹1 billion (US$13
million).Initially, there were ten promoter banks viz. State Bank of India,
Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India,
Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC. In 2016, the
shareholding was diluted to include 13 additional public sector banks, 15
additional private sector banks, 1 additional foreign bank, 10 multi-state co-
operative banks and 7 regional rural banks. The Board consists of Biswamohan

16
Mahapatra as the Non Executive Chairman, Nominees from the Reserve Bank
of India and Nominees from ten core promoter banks.[8] Dilip Asbe is the
current managing director and chief executive officer of the NPCI after A. P.
Hota, who retired from the post on 10 August 2017.
VISION AND MISSION
The long-term vision of NPCI is to increase fund transfer options and to evolve
as the best payments network internationally. And the mission of NPCI is to
reach every Indian with either one or the other payment services be it in-person
or through electronic methods.
VALUES OF NPCI
NPCI firmly believe that their values have eventually shaped their culture,
work ethics and decisions. NPCI has also stated that their values have assisted
in extending their limits and striving for a better today. So that a foundation is
laid for a successful tomorrow.
The core values fostered by NPCI includes:
• Passion for Excellence
• Integrity
• Customer Centricity
• Respect
• Collaboration
OBJECTIVES OF NPCI
1. The organisation aims to create a robust payment and settlement
infrastructure in India.
2. NPCI has been implemented as a ‘Not for Profit’ company under the
provisions of Section 8 of Companies Act, 2013.

17
3. This was accomplished with an intention to provide infrastructure to the
entire Banking system in India for in-person as well as digital payment and
settlement processes.
4. The corporation is primarily focused on bringing innovations amidst the
retail payment systems through various technological updates for ensuring
higher operational efficiency rate and to strengthen the payment procedures.
5. NPCI is striving hard to transform India into a ‘cashless society’ by reaching
every citizen with several payment services.
6. This corporation was initiated by our former President Pranab Mukherjee,
endorsed by the honourable Prime Minister Narendra Modi and later framed
into a card of choice for the Pradhan Mantri Jan Dhan Yojana (PMJDY)
7. Thus, throughout its journey of seven years, NPCI has created a significant
impact on retail payment services in the country.
FORMATION OF NPCI
1. Department of Payment and Settlement Systems (DPSS) provided the initial
approval to issue an authorization to NPCI for operating diverse retail payment
systems in the country.
2. NPCI was also granted the Certificate of Authorization for operation of
National Financial Switch(NFS) and the ATM Networks since 15th of October,
2009.
3. The corporation has also debuted its officials to Institute of Development
and Research in Banking Technology(IDRBT) Hyderabad and has taken over
NFS Operations from 14th of December, 2009.
4. The membership rules and regulations were framed for enrolling all banks
in the country as members.

18
5. The technical advisory committee of NPCI consists of two eminent
professors namely, Prof.N.L. Sarda, the Chairman and [Link], the
Co-Chairman.
6. Members in these committees are employees of various banks and are
present at the level of Assistant General Manager or Deputy General Manager
in their cadre.
PROMOTERS BANKS
The NPCI comprises of ten core promoter banks which significantly eases the
transaction processes initiated through NPCI. They are enlisted as follows:
1. State Bank of India
2. Punjab National Bank
3. Canara Bank
4. Bank of Baroda
5. Union Bank of India
6. Bank of India
7. ICICI Bank
8. HDFC Bank
9. Citibank
10. HDFC Bank
SERVICES OFFERED
The below-mentioned amenities are being offered under NPCI for providing
the customers with better payment and settlement options.
1. Unified Payments Interface (UPI)- It is a system which powers
multiple bank accounts within a single mobile application, interlinking

19
 several bank features and assisting merchant payments under one roof.
On account of this, NPCI conducted a pilot launch with its member
banks. As a result, the banks have started to upload their UPI enabled
applications on Google Play Store from 25th of August, 2016. To know
more about BHIM UPI Brand Guidelines.
2. RuPay- This is a new card payment scheme launched by the NPCI and
has been initiated to offer an open-loop, multilateral, domestic system
for its users. It will allow all Indian banks and financial institutions to
participate in electronic payments frequently. The merits of using RuPay
are mentioned as follows,

1. Lower Cost and Affordability.

2. Customised Product Offering
3. Protection of information related to Indian Consumers
4. Provide electronic product options to not intervened consumer
segments
5. Inter-operability
6. Earn Cashback frequently
7. Insurance cover
8. Exclusive Merchant offers.
In addition to the information stated above to acknowledge the RuPay
Brand guidelines.
3. Bharat Interface for Money (BHIM- It is an application that allows
consumers to make quick and straightforward transactions through UPI.
This feature also permits its users to make instant bank-to-bank
payments and pay or collect money using their unique mobile number or
the Virtual Payment Address. BHIM allows the user to Send money,
Request money, Scan & Pay, Set privacy limits and to split bills.
4. Immediate Payment Service (IMPS)- This feature offered by the NPCI
was launched in 2010. It provides robust, real-time fund transfer which

20
 extends 24*7*365 inter-bank electronic fund transfer services. This can
be executed on multiple channels like Mobile, Internet, ATM and SMS.
Procedural Guideline of IMPS can be accessed .
5. National Electronic Toll Collection (NETC)- NPCI has initiated this
program to meet the electronic tolling requirements of the Indian market.
NETC provides an inter-operable, secure framework to its users. The
benefits of NETC includes,
[Link] in processing transactions
2. Electronification of retail payments
[Link] air pollution by reducing congestion
[Link] fuel consumption.

6. Bharat BillPay (BBP)- The BBP system is a one-stop ecosystem for

payment of all bills providing a flexible ‘anytime anywhere’ bill
payment service to all customers across India to ensure reliability and
safety of [Link] Channels accepted by BBP are Internet
Banking, Mobile Banking, POS, Mobile Wallets, ATM, Kiosk and
through Bank Branch.
Payment Modes available in BBP are Cards (Credit, Prepaid and Debit),
NEFT Internet Banking, UPI, Wallets, Aadhar based Payments and
Cash. The BHIM Bill-Pay process is explained in the official website
along with the links required to download the application. Similarly
Bharat QR Code is a mobile payment solution through a unique square
grid displayed on the mobile screen and can be read by any imaging
device such as camera.

7. *99# or USSD Services- NPCI’s *99# services run on USSD, which

stands for Unstructured Supplementary Service Data. This service has
been practiced to extend banking opportunities to every layman across
the country. The customers can avail this service by dialing *99# a

21
 common number across all the Telecom Service Providers (TSP) using
their mobile phones and transact through the interactive menu displayed
on the screen. The primary services offered by *99# includes sending
and receiving funds, balance enquiry, changing UPI PIN besides hosting
other services.
8. National Automated Clearing House (NACH)- NPCI has introduced
NACH, a web-based solution to promote inter-bank and high volume
electronic transactions for banks, corporates and financial institutes. This
system is used for making bulk transactions ranging from subsidies and
salary till payments pertaining to electricity, telephone and insurance
premium. The procedural Guidelines to be followed to access NACH is
elaborated here.
9. Cheque Truncation System (CTS)- This service offered by NPCI
reduces the time required for the acceptance of customer cheques by
banks. It also ensures convenient retrieval of the required information
and minimizes the timeline stated by banks for clearing cheques. The
operational benefit of CTS is that there are no cases of cheques lost or
tampered. Economic benefits of CTS includes the elimination of cost
involved in paper movement. The Notified Documents required to avail
CTS are enlisted.
10. Aadhar Enabled Payment System (AePS)- It is a bank-led
system which allows online financial inclusion transaction through the
business correspondent of any bank on checking the Aadhar
authentication. The various services availed under AePS are Cash
Withdrawal, Cash Deposit, Balance Enquiry, Aadhar to Aadhar Fund
Transfer, Finger Detection, and printing the Mini [Link] know
more in details about NPCI and the services offered under it, kindly
check the official website. For further queries, clarifications required or
complaints to be filed on the transactions done, the customers can reach
out to the Toll-Free helpline number 18001201740 or 022-45414740

22
11. Other Related Guides- BHIM App BHIM App Bharat Interface
for Money (BHIM) is a payment app that facilitates simple, easy and
quick transactions using Unified Payment Interface (UPI). Unified
Payments Interface (UPI) NEFT, RTGS and IMPS were popular
payment systems that were used in India for online fund transfers until
the introduction.

23
 CHAPTER- 2
LITERATURE REVIEW

24
LITERATURE REVIEW
There have been a lot of studies conducted in the field customer awareness
towords digital payment system both at national and international level. Some
of the previous related research studies are given below.
• Kevin Foster, Scott Schuh, and Hanbing Zhang (2010) they examined
the consumer payment methods with respect to cash holdings and
withdrawals which was decreasing since [Link] was an increase in
card payment system with respect to 2009 in the year 2010, which
resulted in less usage of paper currency. Since 2010 there was an increase
in usage of debit and credit card compare to cash transaction which
slowly took a decline giving rise to prepaid payments.
• Singh.A [Link] (2012) in their study discussed how secure the internet
network should be to make smooth transaction for all the parties and the
merchants. The systems are made in such a way so that there is no
fraudulent activity takes place people can use their card for transaction
in a secure way so that no data is shared. People mostly do digital
transactions for e-commerce but they find internet I not secure to do so.
Therefore some strict protocol should be followed and managed to make
transaction secure and the data is also protected.
• Oladejo, Morufu [Link] (2012) in their study examined the improvement
of e-payment system in Nigeria. They explored what initiated the people
to adopt the e-payment system. A structured questionnaire and some
financial statements were collected to analyse the data. The results were
such that when bank adopted e-payment system there was a change in
the performance level of the banks. With the advent of e-payment system
there was a rise in usage of ATMs.
• Nitsure (2014) in his study highlighted the issues that were being faced
or observed in developing country like India in using the e-payment

25
 system which was due to the low spread of internet and technology. The
paper focused on major issues such as security, rules, etc. IN a country
like India there is a high risk where the poor’s are given a chance to be
informed about such facilities neither they are given any such
information.
• Rakesh H M & Ramya T J (2014), in their study analysed the factors
that which was resulting in the adoption of internet banking in our
country. It was found out that perceived reliability, Perceived ease of use
and Perceived usefulness were the main reason for the adoption or usage
of internet banking.
• Sanghita Roy, Dr. Indrajit Sinha (2014), discussed in their paper that
in India there has been a sudden surge in the usage of digitalised
payment. But still there is almost 90% transactions which are done
through paper currency. They had used the TAM (Technology
Acceptance Model) in this study to find out the factors which are
strengthening the e payment system the factors are innovation,
incentives, and legal frame work and customer convenience.
• Dennehy & Sammon (2015) has analyzed how in the 21st century the
usage of digital payment has increased over the years. The main focus
here was to find out how where will in the digital payment system in
future stand. Many papers have been examined to find out what are the
views regarding the digital payment system. With the passage of time
the technology has been shifting very fast so with the innovation of
technology the aim was to make people familiar with digital payment.
The merchants also got a new platform to invest so as to cater the
customers. Data was collected by following empirical method i.e.
survey, interviews, etc. Lastly the study was only focused on Google data
base that was a limitation about the study.

26
• Sanaz Zarrin Kafsh (2015) made a study on “Developing Consumer
Adoption Model on Mobile wallets in Canada”,in her study she did
convenience sampling from were 530 respondents were selected and
there after the Partial least square model was used to test the [Link] per
the analysis the result perceived usage, perceived ease of use and
perceived security is related to each for forecasting the adoption of
digital payment.
• Ravi (2017), has examined that India’s two third population are residing
rural areas so they play a very important role in the development of the
economy, with the emergence of IT and Communication it is predicted
that rural areas will have 50% of India’s Internet users by 2020. Digital
wallets should be used in rural places so that the people know the
significance of using it and what benefit they will be getting by using it.
The Government of India has also taken up the initiative of making rural
people aware about Digitization. Adoption of technology has always
been low in India compare to other countries but in case of Digital wallet
our country is going with the pace of other countries to become a cashless
economy. As the two third population of India is in rural part so if the
rural people with time adopt the digital payment system then in the
coming years India will become a cashless economy. The government of
India has taken up various initiatives to make the rural people become
familiar with digital wallet. The urban people have adopted the digital
system of payment, now it’s time for the rural people too. If the rural
people are made aware about digitalization soon it will roll out all over
India. The best step that the National Payments Corporation of India has
taken is that digital wallet will work on all mobiles with or without
internet.
• Singh (2017) in his study showed that how digital payment and digital
wallet in India was get popularized due to demonetization. As there was

27
 a tremendous growth in the usage of internet and the no. of smart phone
users were also increasing so people found it convenient to use as an
alternative for cash. In this study he also pointed out that how different
digital wallet companies were having competition to enter and expand
the Indian market as it was the best opportunity for them to establish
their company. It was also predicted that in future India will become a
cashless economy and with digitalization people will surely adopt the
digital mo de of payment. ANOVA was used in this study to show that
there is no significant variance in the consumer perception with respect
to its demographic factors.
• Baghla . A (2018) in his study identified the trends for adopting the
digital payment system India. Further the paper talks about how after
demonetization people started to use the digital platforms for
transactions. How the government initiative to make our economy a
cashless one and how consumer will be adopting such system are further
discussed. A structed questionnaire was used to collect data and find out
the future of digital payment system in india.

28
 CHAPTER- 3
RESEARCH METHODOLOGY

29
RESEARCH METHODOLOGY

TOOLS FOR DATA COLLECTION

Empirical / Qualitative: Qualitative
Data Collection Method: The research is both primary and secondary in nature.
• PRIMARY DATA
Primary data was collected from 70 respondents representing various
demographic factors from Haridwar.
Sample Size: 70
Respondents: The respondents of the study include a diverse group of local
people such as friends, coaching center students, small business owners, bank
customers, retailers, and other users of digital payment systems in Haridwar.
This group covers different age groups, occupations, and educational
backgrounds to provide a comprehensive understanding of digital payment
awareness and usage in the city.
• SECONDARY DATA
Secondary data is collected from authentic and easily available sources related
to Haridwar and digital payments, such as:
1. Official government websites of Haridwar district and Uttarakhand state
([Link]) for local development and digital initiatives.
2. Reports and statistics from National Payments Corporation of India (NPCI)
showing digital payment transaction volumes in Haridwar.
3. Articles and news reports on digital payment adoption in Haridwar’s retail
and tourism sectors.

30
4. Data from local banks and financial institutions operating in Haridwar on
their digital banking services.
5. Online portals providing updates on government schemes promoting digital
payments in Haridwar.
LIMITATION OF THE STUDY
• The research was conducted based on primary and secondary data.
• The primary data for research objectives was collected from samples
based in Haridwar city only. As most of the responses were collected
from students, who are young and tech-savvy, the outcomes of the
research may not be applicable to all sets of banking customers and
banks.
• Though Haridwar is an important pilgrimage city in Uttarakhand with
growing commercial activities, the sample size of 70 respondents from
the city cannot be considered a complete representation of the population
of the country.
• However, the objective of the survey was to verify customers’
perceptions on digital payments with regard to general banking concepts.
Thus, this may not create obstruction in achieving the desired objective
even if Haridwar city cannot replicate other major banking hubs of the
country. For primary data, non-response error cannot be ruled out.

31
 CHAPTER-4
DATA ANALYSIS
AND
INTERPRETATION

32
[Link] CLASSIFICATION
Table
AGE NO. OF RESPONDENT PERCENTAGE
15 to 20 50 50%
21 to 25 28 40%
26 to 30 1 1.4%
31 to Above 6 8.6%
Total 70 100%
(Source primary data)
Chart

AGE
15 to 20 21 to 25 26 to 30 31 to Above

1% 9%

50%

40%

(Source primary data)

INTERPRETATION:
• The above data has shown that 50%(50) of people belongs to 15 to 20 age group.
• The above data has shown that 40%(28) of people belongs to 21 to 25 age group.
• The above data has shown that 1.4%(1) of people belongs to 26 to 30 age group.

33
• The above data has shown that 8.6%(6) of people belongs to 31 to Above age
group.
[Link] CLASSIFICATION
Table
GENDER NO. OF RESPONDENTS PERCENTAGE
Male 32 45.7%
Female 38 54.3%
Others - -
Total 70 100%
(Source primary data)
Chart

GENDER
0%

MALE
46%
FEMALE
OTHERS
54%

INTERPRETATION:
• The above data show that 54.3%(38) responses by female.
• The above data show that 45.7% (32)responses by male.
• The above data show that 0% responses by others.

34
[Link] DIGITAL PAYMENT METHODS DO CUSTOMERS PREFER
Table
PARTICULAR NO OF RESPONSE PERCENTAGE
Credit/debit card 3 4.3%
UPI(eg. Paytm, 62 88.6%
phonepe, google pay,
bharat pay, etc)
Bank Transfer (NEFT, 4 5.7%
RTGS)
Others 1 1.4%
Total 70 100
(Source primary data)
Chart
Sales
1%

6% 4%

Credit/debit cards

Upi (e.g..,paytm, phonepe, google

pay, bharat pay etc
Bank transfer (NEFT, RTGS)

Others

89%

INTERPRETATION:
• 88.6%(62) of people are using UPI as a Digital Payment method.
• 4.3%(3) of people are using Credit/Debit card as a digital payment method.
• 5.7%(4) of people are using Bank Transfer as a digital payment method.

35
• 1.4%(1) of people are using Other modes as a digital Payment method.

4. HOW OFTEN DO YOU TRANSACT ONLINE?

Table
PARTICULAR NO. OF RESPONSE PERCENTAGE
Daily 35 50%
Weekly 14 20%
Monthly 13 18.6%
Rarely 8 11.6%
Total 70 100%
(Source primary data)
Chart

12%

DAILY
18%
50% WEEKLY
MONTHLY
RARELY

20%

INTERPRETATION:
• 50%(35) People transit daily.
• 20%(14) people transit weekly.
• 18.6%(13) people transit monthly.
• 11.4%(8) people transit rarely.

5. RATE DIGITAL PAYMENT PLATFORM EASE-OF-USE.

36
Table
PARTICULARS NO. OF RESPONSE PERCENTAGE
Very easy 46 65.7%
Somewhat easy 19 27.1%
Neutral 5 7.1%
Difficult - -
Total 70 100%
(Source primary data)
Chart
Sales
0%

7%

very easy
27%
somewhat easy
neutral
difficult
66%

INTEREPRETATION:
• 65.7%(46) People says that digital payment is very easy.
• 27.1%(19) People says that digital payment is somewhat easy.
• 7.1%(5) People says that digital payment is neutral.

37
[Link] YOU USE DIGITAL PAYMENT SYSTEM?
Table
PARTICULARS NO OF RESPONDENTS PERCENTAGE

Yes 68 97.1%
No 2 2.9%
Total 70 100%
(source primary data)
Chart

3%

yes
no

97%

INTERPRETATION:
• 97.1%(68) People are using Digital Payment system.
• 2.9%(2) People are using digital payment system.

38
7. DO YOU THINK THAT DIGITAL PAYMENTS ARE SAFE ENOUGH ?
Table
PARTICULARS NO. OF RESPONSE PERCENTAGE
Yes 67 95.7%
No 3 4.3%
total 70 100%
(source primary data)
Chart

4%

yes
no

96%

INTERPRETATION:
• 95.7%(67) people things that Digital payments are safe.
• 4.3%(3) people things that Digital Payments are unsafe.

39
8. HAVE YOU EVER ENCOUNTERED ANY ISSUES OR CHALLENGE WHEN
USING DIGITAL PAYMENTS FOR ONLINE TRANSACTIONS?
Table
PARTICULARS NO. OF RESPONSE PERCENTAGE
Server issue 57 81.4%
Cyber fraud 4 5.3%
Lack of awareness 3 4.7%
Others 6 8.6%
total 100%
(source primary data)
Chart

9%
5%
5%
server issue
cuyber fraud
lack of awareness
others

81%

INTERPRETATION:
• 81.4%(57) People think that server issue is the one of the challenge when
using digital payment for online transaction.
• 5.3%(4) People think that cyber frauds is one of the issue or challenge when
using digital payment for online transaction.
• 4.7%(3) People think that lack of awareness is one of the issue or challenge
when using digital payment for online transaction.
• 8.6%(6) People think that other issues or challenge can be there ehen using
digital payment for online transaction.

40
9. DO YOU FIND DIGITAL PAYMENTS AS CONVENIENT MODE THAN
CASH PAYMENT?
Table
PARTICULARS NO. OF RESPONSE PERCENTAGE
Yes 59 84.3%
No 11 15.7%
total 70 100%
(source primary data)
Chart

16%

yes
no

84%

INTERPRETATION:
• 84.3%(59) People think that Digital payments as convenient mode than cash payment.
• 15.7%(11) People think that Digital payments as convenient mode than cash payment.

41
[Link] PAYMENT SYSTEM IS
Table
PARTICULARS NO. OF RESPONSE PERCENTAGE
Instant mode of payment 39 55.7%
User friendly 19 27.1%
Time saver 12 17.1%
Full of risk - -
total 70 100%
(source primary data)
Chart
0%

17%

instant mode of payment

user friendly
56% time saver
27%
full of risk

INTERPRETATION:
• 55.7%(39) People says digital payment is Instant mode of payment
• 27.1%(19) people says digtal payment is user frendily.
• 17.1%(12) People says digital payment is time saver.

42
 CHAPTER-5
FINDINGS AND SUGGESTIONS

43
FINDINGS OF THE STUDY
1. Rapid Growth in Digital Payments:Haridwar has seen a significant rise in
digital transactions, with ATM and card+PIN transaction volume reaching
approximately 0.69 million, reflecting the city’s increasing shift towards
cashless payments.
2. UPI and QR Code Dominance:UPI-based payments and QR code scanning
have become the most popular digital payment methods among both merchants
and consumers in Haridwar, mirroring national trends.
3. Merchant and Sectoral Adoption:A large number of local businesses,
including shops, hotels, and transport providers, now accept digital payments,
especially in areas with high tourist footfall.
4. Digital Literacy and Awareness Gaps:Despite growth, there remains a notable
section of the population-especially among older adults and rural residents-who
lack awareness or confidence in using digital payment systems.
5. Infrastructure Challenges:Intermittent internet connectivity and occasional
transaction failures are common issues, particularly in crowded or remote areas
of Haridwar.
6. Security Concerns:Some users express concerns about the safety of digital
transactions, fearing fraud or unauthorized access to their accounts.
7. Financial Inclusion Efforts:NPCI platforms like RuPay and AePS have helped
bring more people into the digital ecosystem, but a segment of the population
remains unbanked or underbanked.
8. Surge in Non-Metro Digital Spending:Haridwar, as a non-metro city, is part
of the broader trend where digital spending in non-metros is growing faster than
in metros, especially in sectors like retail, travel, and hospitality.

44
SUGGESTIONS

1. Enhance Digital Literacy:Conduct regular workshops and awareness

drives in local communities, especially targeting senior citizens,
women, and rural residents, to build confidence in digital payments.
2. Improve Internet Infrastructure:Collaborate with telecom providers
to strengthen internet connectivity in remote and high-traffic areas,
ensuring smoother and faster digital transactions.
3. Promote NPCI Platforms:Encourage the use of NPCI products like
UPI, RuPay, and BHIM through local campaigns, merchant incentives,
and user rewards.
4. Strengthen Security Measures:Educate users about safe digital
practices (like not sharing OTPs) and ensure robust fraud detection and
customer support systems.
5. Expand Merchant Onboarding:Provide easy onboarding and
technical support for small vendors, street hawkers, and local
businesses to accept digital payments.
6. Incentivize Digital Transactions:Offer cashback, discounts, or
rewards for digital payments, especially during festivals and tourist
seasons, to motivate both merchants and consumers.
7. Focus on Financial Inclusion:Leverage NPCI platforms like AePS to
reach unbanked and underbanked populations, making digital payments
accessible even without smartphones.
8. Monitor and Resolve Transaction Issues:Set up local helpdesks or
helplines to quickly address transaction failures, refunds, and technical
glitches.

45
CONCLUSION
The move towards cashless economy is definitely a good one but it will take
much time to have a completely cashless economy. The efforts are going well
by the government as well as the private sector companies having there e-
wallets apps such as PayTM, PhonePe etc. The biggest challenge in front of
government is the lack of knowledge and awareness among people and fear of
loss of money by use of digital payment methods risk of hacking. The
government needs to tackle these challenges to have cashless economy and to
give a boost to digital payments to provide sustainable economic development
to the country in the long run.
In future the digital payments are going to be a must and so the change in the
habits of the people to accept the digital payment is also must. The cashless
transition is not only safer than the cash transaction but is less time consuming.
It also helps in record of the all the transaction done. India has more than 100
crore active mobile connections and more than 22 crore smart phone users as
of March 2016. This number is going to increase further with a faster internet
speed. The reach of mobile network, Internet and electricity is also expanding
Digital payments to remote areas. So, it is without doubt said that future
transaction system is cashless transaction.
India is the global leader in digital payments, with 89.5 million transactions in
2022. This includes 46% of all global instant payment transactions through the
Unified Payments Interface (UPI) in 2022, with over 300 million monthly
active users as of November 2022. This year, 91 billion digital payment
transactions have been recorded and today India ranks first in the number of
digital payments made globally.

46
REFERNCES
1.[Link]
2.[Link]
3.[Link]
4.[Link]
mm [Link]/concepts/[Link]
5.[Link]
6.[Link]
alle t_Architecture_for_Payments_Exchanges_Refunds_and_Other_Operations
7.[Link] 8.[Link] .
9.[Link]
10.[Link]

47
ANNEXURE: QUESTIONNAIRE
PROFILE FORM:
NAME:
AGE:
GENDER:

Q1. Do you use Digital payments methods?

1. YES
2. NO

Q2. Which Digital payment methods do customers prefer?

1. Credit/Debit card
2. UPI (paytm, Phonepe, Google pay, Bharat pay, etc.)
3. Bank transfer (NEFT, RTGS)
4. Others

Q3. Do you think that digital payments are safe enough?

1. Yes
2. No

Q4. How often do you transact online?

1. Daily
2. Weekly
3. Monthly
4. Rarely

48
Q5. Have you ever encountered any issues or challenge when using digital
payments for online transactions?
1. Server issue
2. Cyber froud
3. Lack of awareness
4. Others

Q6. Do you find Digital payments as convenient mode than cash payment?
1. Yes
2. No

Q7. Do you think education level impact digital payment usage?

1. Highly correlated
2. Modirately correlated
3. Slightly correlated
4. Not correlated

Q8. Do you believe your income level get influenced due to adoption of digital
payment system?
1. Yes, significantly
2. Yes, somewhat
3. No, not much impact
4. Not sure

49
Q9. Rate Digital payment platform ease-of-use.
1. Very easy
2. Somewhat easy
3. Neutral
4. Difficult

Q10. Digital payment system is

1. Instant mode of payment
2. User friendly
3. Time saver
4. Full of risk

50