A STUDY OF THE ADVANTAGES AND DISADVANTAGES OF DIGITALIZATION AND MONETIZATION

The expansion of digital technology has significantly affected payment habits and financial behaviour in India. Mobile-based payments, UPI, cards, internet banking, and other electronic methods have made even the smallest transactions quick and convenient. On the other hand, cash remains useful in situations where the internet, electricity, digital devices, or sufficient digital literacy are not available. The present study provides a comparative analysis of the economic, social, and behavioural aspects of digital and cash payment systems. The study is based on secondary sources and uses available materials from the RBI, NPCI, IMF, and World Bank. The analysis indicates that digital payments are strong in efficiency, transaction records, and remote payments, while cash payments are free from technological dependence and are simple for many small transactions. Therefore, in the Indian context, it is more practical to develop both methods as complementary means according to circumstances rather than treating them as opposing alternatives.