Consumer Insights on Digital Currency Adoption (e₹-Retail) in Tamil Nadu

Abstract

This study examines the knowledge, views, and use of the Digital Rupee (e₹-Retail) among people in Tier-II cities in Tamil Nadu. This is a type of digital currency issued by the Reserve Bank of India. This study used descriptive and analytical methods. This study collected data from 168 people who know about the Digital Rupee in cities such as Madurai, Coimbatore, Trichy, and Salem and delves into the factors influencing adoption, including convenience, security, trust, and ease of use, while also examining the demographic influences on awareness and perception. The findings indicate moderate awareness, primarily fuelled by social media, with shopping and retail purchases being the main purposes of usage. Factor analysis identified four key drivers of adoption: perceived usefulness, transparency and security, ease of use, and trustworthiness. Although demographic variables such as age and gender showed no significant correlation with awareness levels, income influenced confidence in digital payment systems. Challenges such as privacy concerns and limited merchant acceptance were noted. This study recommends enhancing awareness campaigns, boosting digital literacy, expanding offline transaction capabilities, incentivising merchant participation, and strengthening security measures to encourage broader adoption. The Digital Rupee holds significant potential to advance a secure, efficient, and inclusive cashless economy in emerging urban centers.