From Cards to Digital Wallets: Innovations in Payment Systems and the Aftermath of Demonetization in Nagpur Division

Abstract: This research paper aims at the change from traditional card-based payment systems to digital wallets. It focuses on how the demonetization policy of 2016 in the Nagpur Division led to new payment systems. The study's goal is to find out how digital payment systems are being used, what problems they are having, and what their benefits are after demonetization. Structured questionnaires were distributed to 300 people in Nagpur Division, including retailers, consumers, and small companies, to get first-hand information. A stratified random sampling method was used to make sure that people from different backgrounds and business areas were represented. The study method uses both quantitative and qualitative analysis, such as descriptive statistics and thematic analysis of patterns in how people behave. The results show that there has been a significant shift toward digital payment systems since demonetization. This is because they are easier to use, the government is offering rewards, and the digital infrastructure is growing. But problems like worries about cybersecurity, a lack of digital literacy, and unreliable internet access still exist. This study shows how demonetization changed payment systems in Nagpur Division. It gives policymakers, banking institutions, and businesses ideas on how to better encourage people to use digital payments and get rid of problems that stop them.