Author(s): Nidhi Shree and S. Durga
Background: An economy in which no cash sales exist is termed as cashless economy. A cashless economy fuctions with credit card, debit card, wallet, or digital purchases. India is still in its early stage of digital payments and majority of the people rather prefer cash transactions than cards, but India is evolving into a "cashless economy." It is necessary to stop shadow economies, corruption, terror funding, trafficking in human beings and narcotics, counterfeit money, etc. Objectives: To research the effect of the government's cashless policy on banks' marketing strategies. And to recognize the difficulties that banks face in adopting the payment mechanism without currency. Methods: This research was carried out in some selected banks in Hyderabad to learn the effect of the digital payments on the marketing strategies of banks. The primary data was gathered using an interview and an organised questionnaire. This survey was carried out in the Six of Hyderabad city's top banks i.e. State Bank of India, ICICI Bank, HDFC Bank, YES Bank, Central Bank, and Axis Bank. Results: The majority of the Likert scale rating given was 3 which is neither agreed nor disagree 4 as agree and 5 strongly agree. The highest mean was seen as a safety issue with 4.6 and Less POS with a mean of 4.5 and less no. of ATM working properly with a mean of 4.2. The least mean was 2.6 seen in the server down issue. Conclusion: Cashless economy by fostering competitiveness, open access and payment interoperability, the integration of new technology and financial and social assimilation into the market, and the safeguarding of the security of digital transactions of customers, it should be beneficial to bridge the Digital Divide.