of in cash can play a major role in encouraging savings. When paid on the account, the money is saved by default, while … - as long as payments are done in cash - the money is ready to be spent. We test our hypothesis in rural India, with … empathy towards the banker. Second, we provide evidence against the treated having developed an active savings habit on the …

behavior. In rural India, we study the effect on savings of allocating identical weekly payments on a bank account (treated) or …. Based on a novel randomized control trial, we document that the payment method is an important determinant of savings … in cash (control). The treatment impact is huge: savings increase by 110% within three months, and the effect is long …