The informal sector in specific is mostly affected by demonetization move, as significant proportions of the transactions are made using cash. Against this backdrop, the current paper aimed to comprehend the view point of retailers and customers on demonetization move, and its impact on their adoption of cashless transaction in Indian unorganized retail context. This objective is accomplished through gathering data using structured questionnaire from sixty retailers and sixty customers through qualitative interviews in Uttar Pradesh State, India. Hierarchical multiple regression was used to test the proposed model for the retailer's data and Fish Bone Model was developed for customer's data. Findings from retailers view point indicated that, awareness on perceived benefits, impact on business, human capital and level of profits to be significantly predicting the adoption of cashless transactions. Further, when Information and Communication Technology (ICTs) Ownership & Usage is included to the above variables, the prediction was improved. ICTs ownership and usage was found to have a limited impact on adoption of cashless transactions. The qualitative findings from customers view point revealed that factors related to retailers, Government, level of expertise and buyers (customers) restrained them from adapting to cashless modes of payments. Information from this study aids retailers, Government and also customers in understanding the impact on such move. This study explored the hardly researched area, as the facts are unclear, and further the impact of such a move would vary in its extent, type of public and geographical area.
Demonetization, information & communication technology (ICT), unorganized retail sector, fish bone diagram, cashless transactions
