Role of Digital Literacy in the path of Financial Modernization

Abstract

This study attempts to determine the time when the Digital Financial Literacy would be adequate to conduct all the transactions digitally, and to find out the point when India would be Digitally Educated enough to replace the physical cash with digital currency completely. The study also aims to find out whether India could sustain closure of Banks for weeks had the COVID 19 outbreak hit the Country in the year 2015 instead of Financial Year 2020-2021 and lockdown would have been imposed then. The study uses Regression analysis and compares the total number of digital transactions as a percentage of total transactions during the year 2015 to 2024 to establish that India would be able to replace physical cash with digital currency in the next five to six years with this pace of digitalization of Banking transaction.