ADOPTION OF MODERN PAYMENT SYSTEMS IN RURAL INDIA: A CUSTOMER PERSPECTIVE WITH SPECIAL REFERENCE TO VILLAGES IN SAGAR DISTRICT, MADHYA PRADESH

Abstract

Abstract: The rapid advancement of digital technology and government-led financial inclusion initiatives have significantly transformed the payment ecosystem in India. While urban populations have widely adopted modern payment systems, rural areas continue to exhibit slower and uneven adoption patterns due to infrastructural, technological, and socio-economic challenges. This study aims to analyze the customers’ perspectives with respect to modern payment systems in rural areas, with special reference to villages surrounding Sagar district in Madhya Pradesh. The primary objective of this research is to examine the level of awareness, preferences, usage patterns, and risk perceptions associated with modern payment systems among rural consumers. The study covers various digital payment modes such as UPI, mobile banking, internet banking, debit and credit cards, mobile wallets, AEPS, and USSD services. A descriptive research design was adopted, and primary data were collected through a structured questionnaire administered to rural respondents. Secondary data were obtained from journals, government reports, RBI publications, and related academic literature.