ASTUDYONTHEUSAGE OFUPIINRURALAREAS

Abstract

With an emphasis on assessing
the awareness, adoption, and challenges
of digital transactions, this study
investigates the impact of Unified
Payments Interface (UPI) in rural areas
with reference to Coimbatore city. The
rapid digitalization of India’s financial
system has brought UPI to the forefront
of rural banking, offering instant, low
cost,
and convenient transactions.
However, despite government initiatives
and increased smartphone penetration,
the adoption rate in rural regions faces
several obstacles such as limited
internet connectivity, lack of digital
literacy, fear of fraud, and technical
issues. This research, based on both
primary data collected through surveys
and secondary data from published
reports, seeks to understand the benefits,
barriers, and usage patterns of UPI
among rural users. The analysis
highlights that UPI has promoted
financial inclusion, reduced dependence
on cash, and enhanced transaction
efficiency,
while
simultaneously
revealing gaps in awareness and trust.
The findings provide valuable insights
for policymakers, banks, and fintech
companies
to
campaigns,
design
strengthen
awareness
security
measures, and improve infrastructure,
thereby encouraging broader acceptance
of UPI in rural Coimbatore and beyond.