PUBLIC PERCEPTION ON TRANSITION TO DIGITAL CURRENCY (CBDC) IN THE DIGITAL INDIA FRAMEWORK

Abstract: This study examines public perception and adoption of Central Bank Digital Currency (CBDC) within the Digital India framework, focusing on India’s transition from a cash-based to a digital economy. It analyses awareness, usage patterns, benefits, and challenges associated with digital payment systems, including UPI and the Digital Rupee. The research is based on primary data collected from 123 respondents using a structured questionnaire and supported by secondary sources. Findings reveal high awareness but low actual usage of CBDC, with convenience and government- backed security as key drivers. However, challenges such as lack of awareness, technical complexity, and privacy concerns hinder widespread adoption. The study concludes that a hybrid model combining cash, UPI, and CBDC is preferred for a sustainable financial ecosystem.

Keywords: Central Bank Digital Currency (CBDC), Digital India, UPI, Financial Inclusion, Electronic transaction, UPI Integration, Demonetization, Digital Literacy, Cultural Reliance, Adjustment costs, Digital Rupee, Cashless Economy, Financial Technology (FinTech)