The notification, released on Wednesday by the ministry of finance, said that cash could be a potential medium through which the virus propagates.
The notification advised banks to run campaigns in the media, social media and via email and SMS to highlight the health benefits of adopting digital payments given the prevailing situation.
Customers can also be educated on these matters through banners and posters at branches, business correspondent outlets and ATMs, the notification said.
Additionally, the government has also asked that business correspondents, customer service providers and banking agents provide sanitation facilities to customers while using commonly used equipment such as biometric readers for Aadhaar enabled payment systems and ATM machines.