Comparative Evaluation of Online and Cash Payment Systems in BSPHCL: Case Studies from Patna and Gaya

Abstract

This study provides a data-driven evaluation of electricity bill payment patterns within the Bihar State Power Holding Company Limited (BSPHCL), with a specific focus on the urban and rural divisions of Patna and Gaya during the final quarter of 2024. Utilizing official datasets acquired through the Right to Information (RTI) Act from seven distinct electricity supply divisions—including Dakbunglow, Danapur, Gardanibagh,Patliputra, Barh (Patna), and Sherghati (Gaya)—the research captures monthly trends in digital (website/app) and traditional (cash/cheque) payment modes among domestic consumers. The analysis reveals that although the total number of consumers gradually increased across all divisions from October to December 2024, the adoption of online payment methods either stagnated or declined, particularly in December. Notably, Patna divisions such as Dakbunglow and Barh experienced significant surges in cash counter transactions, reversing the digital gains seen in November. In Gaya’s Sherghati division, urban digital payment usage showed a steady decline, while rural users exhibited a brief recovery in December following a prior drop. These fluctuations suggest persistent barriers to sustained digital adoption, including infrastructural gaps, user trust issues, and digital literacy constraints. The findings underscore the urgent need for awareness initiatives, improved digital infrastructure, and targeted policy reforms to encourage online payment adoption, thereby enhancing operational efficiency and transparency within BSPHCL.

Introduction

The study focuses on the transition to digital payment systems for electricity bills in Bihar, India, as part of the country’s broader push towards a cashless economy under initiatives like Digital India and BharatNet. Despite infrastructure efforts by the Bihar State Power Holding Company Limited (BSPHCL) to enable online bill payments via websites and apps, many consumers—especially in districts like Patna and Gaya—continue to prefer traditional cash payments.

Data from October to December 2024 shows mixed trends: while the total number of electricity consumers increased slightly, the adoption of online payment methods stagnated or declined in several urban divisions, with a rise in cash payments during December. This indicates persistent behavioral, infrastructural, and systemic challenges such as low digital literacy, poor internet access, and mistrust in digital platforms, particularly in rural and semi-urban areas.

The study uses official data obtained through the Right to Information Act to analyze payment patterns and compares online versus offline payment usage in seven divisions. It aims to identify barriers to digital adoption and recommend policy measures to increase digital engagement among electricity consumers.

Key findings highlight:

• Online payments provide convenience and transparency but face adoption hurdles.

• Offline cash payments remain dominant due to infrastructural and socio-economic factors.

• Urban areas show fluctuating online payment trends; rural areas show slow recovery.

• Existing digital infrastructure and awareness programs have limited impact so far.

• Targeted strategies are necessary to boost online payment adoption, especially in less developed areas.

The research underscores the importance of improving digital literacy, infrastructure, and trust to promote inclusive, efficient, and transparent public utility payments in Bihar.

Conclusion

1) The analysis of electricity bill payment behaviors across urban and rural divisions in Patna and Gaya during the last quarter of 2024—grounded in RTI-acquired data—demonstrates a pronounced and persistent reliance on offline cash-based methods. Despite the steady growth in the number of consumers across all six divisions, digital payment channels have not seen proportional adoption. In fact, most divisions reported either stagnation or a decline in online transactions, with December marking the lowest point in digital engagement during the quarter. 2) Urban divisions such as Dakbunglow, Gardanibagh, and PESU (East) experienced a marked increase in cash counter payments, reversing earlier trends that hinted at growing online adoption. Similarly, rural divisions—Barh and Sherghati—continued to rely heavily on physical payment methods, with Barh Rural showing a gradual decline in online payments and Sherghati consistently reporting low digital usage throughout the period. Even in divisions like Danapur, where some digital activity was recorded, it was not sustained and did not keep pace with the overall consumer growth. 3) These findings suggest that structural and behavioral barriers—such as inadequate digital literacy, patchy internet access, lack of confidence in digital systems, and minimal consumer incentives—continue to hinder the shift toward online platforms. The temporary uptick in online payments in November, followed by a sharp drop in December across most regions, further underscores the volatility and fragility of digital engagement in this context. 4) To foster a meaningful shift toward digital payments, BSPHCL must prioritize localized and consumer-centric interventions. These should include improving digital infrastructure in semi-urban and rural regions, ensuring the reliability of online payment systems, simplifying interfaces for user-friendly access, and actively addressing consumer apprehensions through awareness campaigns. Moreover, consistent digital literacy initiatives—particularly those rooted in community engagement—and small, recurring incentives can help build trust and habitual usage. 5) The evidence strongly indicates that without such targeted and sustained efforts, the vision of a digitally empowered electricity payment ecosystem will remain out of reach. BSPHCL’s path forward must be informed by on-ground realities, as highlighted by this RTI-backed data, and focused on bridging the digital divide through inclusive and practical strategies.

References

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Copyright

Copyright © 2025 Raunak Kumar. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.