Dean Chakravorti, Research Fellow Ben Mazzotta and CEME Senior Rama Bijapurkar Explore "The Cost of Cash India"
Published by The Institute for Business in the Global Context (IBGC)
Date: November 6, 2014
The payments business in India is on the cusp of a revolution. With rapid
growth and modernization of the economy, there is no doubt that a majority of
India’s 1.2 billion plus citizens will demand and get modern financial services
far superior to what their parents’ generation enjoyed. It is simply a matter of
when the supply side catches up.
This report is the product of a research effort that analyzed the most pertinent
policy documents, reports, scholarship, expert interviews, and payments data.
It is the second in a series of country reports on
The Cost of Cash
by the Institute
for Business in the Global Context (IBGC). The series seeks to ascertain the
private costs and risks of cash management facing diverse stakeholders in
society: consumers, business, government, and financial
systems. It does not forecast the likelihood that cash will
fall into disuse, or drop below any threshold in payment
market share. It is different from much of the academic
work in payment economics, which focuses explicitly on
social costs with a view toward informing debates around
payment clearing and settlement. Instead, we analyze the
private costs to households and businesses that arise from
their use of cash, beginning when cash is received and ending when it is spent
again. We base our estimates on original IBGC surveys, coauthors’ surveys
and interviews, and a broad mix of academic studies and official statistics.