The pre-dominant use of cash could also be attributed to the fact that the process for adoption of non-cash mode of payments started relatively late in the country. Notwithstanding this, the Reserve Bank has been in the forefront both as operator and facilitator for promoting the use of cashless payment instruments in the country.
The technology implementation in banks which have shaped the payment system in turn is largely driven by the recommendations of the various committees set up by RBI. Payment system modernisation started in late eighties with introduction of MICR based cheque clearing in mid eighties.