A Study on the Impact of Cashless Transactions among Street Vendors in Thoothukudi City after the Implementation of Demonetization

Abstract

This study explores the impact of demonetization and the subsequent shift to cashless transactions
on street vendors in Thoothukudi City. Street vendors, who have traditionally operated on cash-
based transactions, faced significant challenges during demonetization due to the shortage of
currency and lack of change. The study assesses the level of awareness regarding cashless
transactions, evaluates the adoption of digital payment methods among vendors, and identifies the
difficulties they encounter in implementing e-banking systems. Through surveys of 60 vendors,
the research highlights the socio-economic factors influencing cashless transaction adoption and
the barriers preventing its widespread use. The findings indicate that while there is some awareness
of cashless methods, the lack of education, technical barriers, and language issues hinder the full
integration of digital payment systems among street vendors. The study concludes with
recommendations for improving the adoption of cashless transactions, emphasizing the need for
financial literacy campaigns and government support.