SOUTH ASIA
RESEARCH
Vol. 40(2): 1–18
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DOI: 10.1177/0262728020915566
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Copyright © 2020
The Author(s)
DEMONETISATION, BANKING AND
TRUST IN ‘BRICKS’ OR ‘CLICKS’
Masudul Hasan Adil and Neeraj R. Hatekar
UNIVERSITY OF MUMBAI, MUMBAI, INDIA
ABSTRACT This article seeks to advance contextualised understanding
of the extent to which a cashless economy in India can be a feasible
developmental goal. Initially, impressed with critiques of the sudden
‘demonetisation’ on 8 November 2016, we conducted econometric
research to test how banks (‘bricks’) could be brought closer to
rural people. However, this traditional approach of envisaging
more banks was rapidly overtaken by the massive uptake of digital
payment methods (‘clicks’) in India since 2016. Partly driven by
the Reserve Bank of India (RBI), this has raised new concerns
and research agenda focused on people’s trust in banking and new
technologies, consumer skills and people’s basic rights vis-à-vis a
state that, controversially, now seems to be seeking more control
within a relentlessly changing postmodern scenario.
KEYWORDS: banking, cashless economy, demonetisation, development,
digitalisation, India, trust, COVID-19, pandemic
Introduction: Digital India’ Pace of Development and
Problems of Trust
Seeking to promote ‘Digital India’, the government of India has been taking energetic
and increasingly far-reaching steps leading to greater digitalisation of financial trans-
actions in the twenty-first century (Ligon et al., 2019: 15; Reserve Bank of India,
2019). Prominent measures include the ‘demonetisation’ of 8 November 2016,
which ‘resulted in a sudden and sharp decline in the availability of cash … and a
forced uptake of digital payments’ (Agarwal et al., 2019: 2). Earlier well-known
measures to drive digitalisation included prominently the Aadhaar scheme, which
provides a unique 12-digit identity number for every person in India, including for-
eign residents. The Aadhaar card, one of the ubiquitous symbols of India’s digital
economy, has now become virtually mandatory. The frequently amended Aadhaar