Achieving Sustainability in India Through Modern Payment System: An Empirical Study

Abstract

This study investigates the sustainability of digital payments in India, focusing on their role in economic growth and financial inclusion. Utilizing data from 2011-12 to 2020-21 and employing methods like ARDL and DOLS, the research explores the relationship between digital payments and variables such as digital infrastructure, net national income, and cash circulation. Findings indicate a significant impact of these factors on the volume and value of digital payments. The study highlights the government’s Digital India initiative as a critical driver but acknowledges the persistent preference for cash, emphasizing the need for ongoing infrastructure and financial literacy efforts. The results suggest that while digital payments their integration into the Indian economy requires sustained policy and educational efforts.