Impact of Digital Payment System on Commercial Bank’s Profitability and Operational Performance

Authors

DOI:

https://doi.org/10.53573/rhimrj.2026.v13n04.004

Keywords:

Digital Payments, UPI, Commercial Banks, Profitability, ROA, ROE, Operational Efficiency

Abstract

This paper examines various impacts of utilizing digital payment technology on the financial performance of commercial banks in India. The research explores the impact of different payment methods, such as UPI, internet banking, card payments, and others, on the performance and efficiency of operations in banks under consideration. The research is based on quantitative techniques and explanatory analysis of secondary data, taken from a well-balanced sample of scheduled commercial banks in India (both public and private), to see if there is a relationship between digital payment intensity and financial metrics, specifically ROA, ROE, and NIM of the considered banks. The transactions made using different digital technologies, such as UPI and NEFT/RTGS payments, among others, will be evaluated in the research. The findings show that although digital technology has a significant effect on efficiency, costs, and cost savings for banks, the effect on profits can differ depending on the bank specifics.

Author Biographies

Dr. V Kanimozhi, Associate Professor, Department of Management Sciences, Hindusthan College of Engineering and Technology, Coimbatore, Tamilnadu

Dr Kanimozhi V is currently working as Associate Professor in the Department of Management Sciences, Hindusthan College of Engineering and Technology. She is a Gold Medalist and Rank Holder in Master of Business Administration from Anna University. Has Completed Doctorate in Management from Bharathiar University, Coimbatore. She has cleared National Eligibility Test for Lectureship (NET) conducted by UGC- India and State Eligibility Test for Lectureship (SET) conducted by Government of Tamilnadu, India. Has received best faculty award, best self-learner award from Hindusthan College of Engineering and Technology. She has more than 15 years of work experience including industry and teaching MBA students at Business School and Engineering college. Has served as a resource person for programmes on entrepreneurship and management. Has published various papers in national, international journals, conferences and book chapters.

Shini D, Student, Department of Management Sciences, Hindusthan College of Engineering and Technology, Coimbatore, Tamilnadu

Ms Shini D received her Bachelor of commerce from SNMV College of Arts and Science, Coimbatore, Tamil Nadu, India. she is pursuing in MBA (Marketing and Finance), from Hindusthan College of Engineering and Technology, Coimbatore, Tamil Nadu, India. she is the student Vice President of Finance Club of Department of Management and Sciences, Hindusthan College of Engineering and Technology. she has Completed NPTEL courses on the topics “Softskill Development”. she has completed her Global Immersion Project in Asia Pacific University, Malaysia. she completed Social Immersion project and Rural Innovation project during her course time and also, she completed HR workshop held under the certificate programme in Banking, Finance and Insurance by Bajaj Finserve limited.

References

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Gupta, A. M. (2023-2024). A Study on Digital Payment System with Reference to NPCI. Nagpur: Rashtrasant Tukadoji Maharaj Nagpur University. Retrieved from https://gscen.shikshamandal.org/wp-content/uploads/2024/07/11.pdf

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Published

2026-04-15

How to Cite

Kanimozhi, V., & Shini, D. (2026). Impact of Digital Payment System on Commercial Bank’s Profitability and Operational Performance. RESEARCH HUB International Multidisciplinary Research Journal, 13(4), 26–31. https://doi.org/10.53573/rhimrj.2026.v13n04.004

Issue

Vol. 13 No. 4 (2026): RHIMRJ [APR-2026]

Section

Articles