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An Analysis of People's Perception Towards Cashless System in Karnataka State with Special Reference to Kodagu District
Subject area: Management and Commerce · Area of research: Commerce
DOI: https://doi.org/10.64388/IREV10I2-1722216
Abstract
India's payment ecosystem has undergone a rapid structural transformation over the last decade, moving away from a predominantly cash-based system towards a technology-enabled, cashless mode of transacting. Driven by the Digital India programme, the demonetisation exercise of 2016, the Unified Payments Interface (UPI), and the aftershocks of the COVID-19 pandemic, cashless instruments such as UPI, mobile wallets, net banking and plastic money have penetrated even geographically remote and hilly regions of the country. Karnataka, and particularly the hilly, plantation-dominated Kodagu (Coorg) region of Karnataka, presents a distinctive setting to examine this transition because of its mixed rural-urban character, seasonal tourism-driven cash flows, and historically lower banking-technology penetration relative to metropolitan Karnataka. This paper analyses the perception, awareness, usage pattern and problems experienced by residents of Kodagu district with respect to the cashless payment system. A descriptive-cum-analytical research design was adopted, and primary data were collected through a structured questionnaire administered to 150 respondents selected using stratified-convenience sampling across Kodagu town and its surrounding taluks. The data were analysed using percentage analysis, mean-score ranking and the Chi-square test of association with the help of SPSS. The review of literature, extending up to 2025, situates the study within the broader national discourse on financial inclusion, the Reserve Bank of India's Digital Payments Index, UPI-led behavioural change, and the persistent digital divide in semi-urban and rural India. The findings indicate that respondents hold a largely favourable perception of the cashless system, primarily driven by convenience, speed and government promotion, though concerns regarding network connectivity, transaction security, and digital literacy continue to moderate the pace of adoption, especially among older and lower-income respondents. The paper concludes with policy-relevant suggestions for banks, fintech firms and local administration to accelerate inclusive cashless adoption in hill-district economies such as Kodagu.
Keywords
Cashless economy, Digital payments, Perception, UPI, Financial inclusion, Karnataka, Kodagu, Coorg
How to cite this paper
@article{1722216,
author = {Dhamayanthi P T},
title = {An Analysis of People's Perception Towards Cashless System in Karnataka State with Special Reference to Kodagu District},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {10},
number = {2},
pages = {860-870},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1722216.pdf},
abstract = {India's payment ecosystem has undergone a rapid structural transformation over the last decade, moving away from a predominantly cash-based system towards a technology-enabled, cashless mode of transacting. Driven by the Digital India programme, the demonetisation exercise of 2016, the Unified Payments Interface (UPI), and the aftershocks of the COVID-19 pandemic, cashless instruments such as UPI, mobile wallets, net banking and plastic money have penetrated even geographically remote and hilly regions of the country. Karnataka, and particularly the hilly, plantation-dominated Kodagu (Coorg) region of Karnataka, presents a distinctive setting to examine this transition because of its mixed rural-urban character, seasonal tourism-driven cash flows, and historically lower banking-technology penetration relative to metropolitan Karnataka. This paper analyses the perception, awareness, usage pattern and problems experienced by residents of Kodagu district with respect to the cashless payment system. A descriptive-cum-analytical research design was adopted, and primary data were collected through a structured questionnaire administered to 150 respondents selected using stratified-convenience sampling across Kodagu town and its surrounding taluks. The data were analysed using percentage analysis, mean-score ranking and the Chi-square test of association with the help of SPSS. The review of literature, extending up to 2025, situates the study within the broader national discourse on financial inclusion, the Reserve Bank of India's Digital Payments Index, UPI-led behavioural change, and the persistent digital divide in semi-urban and rural India. The findings indicate that respondents hold a largely favourable perception of the cashless system, primarily driven by convenience, speed and government promotion, though concerns regarding network connectivity, transaction security, and digital literacy continue to moderate the pace of adoption, especially among older and lower-income respondents. The paper concludes with policy-relevant suggestions for banks, fintech firms and local administration to accelerate inclusive cashless adoption in hill-district economies such as Kodagu.},
keywords = {Cashless economy, Digital payments, Perception, UPI, Financial inclusion, Karnataka, Kodagu, Coorg},
month = {August},
doi = {https://doi.org/10.64388/IREV10I2-1722216}
}