Electronic Payment System Essay

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3. Demonetization, Digital Payment Systems and Malerba’s Framework on Sectoral Innovation System
Demonetization is the act of stripping a particular form of currency unit from circulation and its status as legal tender. Demonetization becomes necessary whenever there is a change in the national currency. The current form or forms of currency in circulation is pulled from the circulation often to be replaced with new form of currency. This may involve introducing new currency either with the same denomination or with completely different denominations. [8]. Demonetization is not new and many countries around the world has taken this economic step to ban some form of currency in circulation making huge amount of cash useless overnights due to plethora of reasons like fighting counterfeit currency, limit
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In digital payments, both payer and payee use digital modes to send and receive money and no hard cash or any other physical mode of transfer of money is involved. It is also known are electronic payment system. It is an easy, fast and convenient way to send and receive money [10]. There are different types of digital payment systems utilizing different modes of connectivity like payments through mobile may happened utilizing GPRS (internet) connectivity or through GSM connectivity, payment through E-Wallets or payment through usage of cards like Credit, Debit or Prepaid Cards.
The approach of innovation systems, and in particular sectoral innovation system, provides understanding of the interactive and collective nature of innovation, and describes the role of various actors, information, knowledge, and interactions among agents involved in the process of innovation. However, according to Malerba, sectoral innovation systems are highly localized and are evolved under the influence of regional economic conditions [11,12].
4. Role Played by Indian Government to promote Digital Payment

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