S. No.
Author (year) Paper Title
Dr.D.Umamaheswari and
1 Demonetization - Cash Crunch or Cash Curse
Ms.K.Suganthi (2017)
2 Surajit Ghosal (2017) An impression of demonetization on Indian economic slowdown
Ms. Smita Mahesh Pachare
3 Demonetization : Unpacking the Digital Wallets
(2016)
Vinita Choudhary & Dr.
4 Vijayalakshmi Srinivas (2017) AFTER EFFECT OF DEMONETIZATION ON INDIAN ECONOMY
A study on the impact of “India- Demonetization 2016”on the educated
Mrs. Tina Blossom Francis
5 working class of Kerala–A survey among the faculty members of the St.
(2017) Xavier’s College for women, Aluva, Kerala, India.
6 K.Bharathi (2017) Demonetization: Impact on Indian Economy
7 Chabi Gupta (2016) PAYMENT BANKS AND DEMONETIZATION
Ahmad Khalid Khan and Syed Role and Significance of FDI (Outward) in Indian perspective An Analysis:
8 Mohammad Faisal (2018) Post Demonetization Period
9 Dinesh Kumar Gupta (2017) Demonetization and Its Overall Impact
10 Ishfaq Hussain Examining the Effect of Demonetisation on Grocery Retailing in India
Bhat, Soumya Singh (2018)
Journal Name
International Journal of Latest Transactions in Engineering and Science
International Journal of Interdisciplinary and Multidisciplinary Studies (IJIMS)
We’Ken International Journal of Basic and Applied Sciences
PARIDNYA – The MIBM Research Journal
IJSDR
International Journal of Trend in Research and Development (IJTRD)
International Journal of Technical Research & Science
Journal of Accounting & Marketing
Journal of Accounting & Marketing
Asian Journal of Management
Abstract
Ever since our Honorable Prime Minister Mr. Narendra Modi, announced the idea of Demonetization at the night of
November 8th, this has been the topic for discussion not only in India but also in all the countries that have been in a
close trade relationship with our nation. At this point, it is very significant to turn the pages of Indian history and see
the earlier times when similar ideas of demonetization have been implemented and its impact on the Indian economy.
One day the government of a large and fast-growing economy became convinced that curbing shadow economy of
millionaires hoarding piles of illicit cash by withdrawing 86 percent by value of the cash in circulation in India remained
highly under criticism. A broad cash crunch and broken supply chains threatened a sharp economic slowdown – a
potential loss of economic activity and a drag on broader Indian economic growth as anticipated by us. But, the reality
revealed that economy grew not below 7 percent in 2016-17 negating all our negative speculations and even the
economy performed sound based on macroeconomic parameters, especially inflation. Some critics argued that GDP
estimation may be misleading due to negative growth impact in informal sectors and hard to obtain true cost of
demonetization. It is obvious that Demonetization brought about a surgical strike on informal sector and succeeded to
control it to a greater extent. This paper attempts to clarify that even though the short term effects of demonetization
was painful for the common mass of the society, but it did not cause Indian economic slowdown at all and further
expanded public spending which is expected providing enhanced welfare to the society paving the way of ‘cashless
economy’.
On Nov. 8, 86% of India's currency was nullified in a great demonetization effort that aimed to clean out the black
market's cash supply and counterfeit notes which completely disrupted the social, political, and economic spheres of
the 'worlds second largest emerging market. All 500 and 1,000 rupee notes were instantaneously voided, and a 50 day
period ensued where the population could redeem their cancelled cash for newly designed 500 and 2,000 rupee notes
or deposit them into bank accounts. India has done this before. In 1946, all 1,000 and 10,000 rupee notes were
recalled. In 1978, 1,000, 5,000, and 10,000 rupee notes were demonetized. In the days following Modi's
announcement, the banks didn't have enough of the newly designed banknotes on-hand to distribute in exchange for
the cancelled notes, and there simply wasn't an adequate supply of smaller denominations in circulation to run the
cash economy. This could be the opportunity for ewallet, companies to flourish and increase their customer base. For
safe and fast transactions ewallet are emerging as an alternative to cash.
Demonetization meaning is withdrawal of a any currency from circulation or Demonetization in very simple terms
means that the currency is no longer legal in the country and it is only a piece of paper with no use. On 8th of
November 2016 Indian prime minister announced that the notes of Rs 500 and Rs1000 will not be legal to use from
midnight. And that Reserve Bank of India is withdrawing the old currency of Rs 500 and Rs 1000 notes and issuing new
note of 500 and a 2000 Rs note which will be in circulation from date 10th November 2016. The decision has taken with
the expectation to clean the economic system. The objective was to chase black money and fake currency, to remove
corruption, to stop terror funding, to encourage country towards cashless economy. This study is attempted to study
the impact of demonetization on the Indian financial market. This study is purely based on secondary data. The data
has been collected from the different sources like research papers, published sources like journals reports, newspapers,
magazines, and websites.
Government of every country focuses on long term prosperity and this can be attained only by wiping out the major
evils of the society like corruption, black money and terrorism. And, Demonetization, 2016 rightly addresses this. The
scheme has dealt a lethal blow to the parallel economy that casted its ugly shadow on the nation’s economy for long.
Demonetization calls for a cashless, digitized India. The government asked the people to go cashless by adopting and
adapting to the digital mode of financial transactions. The study focuses on understanding the opinion of the common
educated man, who are meant to enact the whole process of transformation of India into a Digitized Economy and how
they take this initiative of demonetization. On an average of 46% of respondents feel that demonetization will wipe out
the major evils of the society. While 30% were neutral. They were sure that demonetization would address corruption
more than black money. The respondents opined that demonetization affected the agriculture sector most when
compared to Manufacturing and Service sector. They also say that the Lower Income Class was the most negatively
impacted class of all. Respondents opined that at the onset of demonetization being declared, they resorted to Banks
(82%) while some resorted to Post Offices (10%) for getting their invalid currencies exchanged. Majority felt that the
process was more time consuming rather than sensing it as difficult. Inspite of the sample being, the well educated
class of the economy ie. Academicians, the majority of 58%, were unaware of the recent modes like Adhar Enabled
Payments, Unified Payment Interface, USSD etc, introduced to enable ease of going cashless. So the plight of the
common man can be imagined. The respondents were neutral regarding whether Demonetization will reduce GDP.
Whereas a majority of 56% agreed that Demonetization will end up in Digitized India even though 34% were neutral.
The educated class of the State of Kerala feels that demonetization would be good, if it were to eradicate the evils of
corruption, black money and terrorism. The study points out that majority is into equipping with cashless modes like
Plastic Money, even though not the latest ones like E wallets and Mobile Banking, but a minority among this educated
class is yet to adapt to the need of the hour i.e. going cashless. The move of the government was opined, as an
initiative that was not well planned.
The argument posited in favour of demonetization a ―Surgical Strike on Black Money‖, i.e., the cash that would be
extinguished would be ―black money‖ and hence, should be rightfully extinguished to set right the perverse incentive
structure in the economy. While the facts are not available to anybody, it would be foolhardy to argue that this is the
only possibility. Therefore, it is imperative to evaluate the short run and medium-term impacts that such a shock is
expected to have on the economy. Further, the impact of such a move would vary depending on the extent to which
the government decides to remonetise. This paper elucidates the impact of such a move on the availability of credit,
spending, level of activity and government finances.
The year 2014-15 is known to be the year of financial inclusion with Jan Dhan Yojana, 2016 marked some historic policy
changes such as the GST (Goods and Service Tax) and Demonetization much recently, and finally 2017 would be the era
of payment banking. This research paper will focus on the recent performance of the banking sector in India, the need
to demonetize and payment banks. Attempting to dig through the history of previous demonetization moves, this paper
will focus on the reviews of the move, the likely banking revolution in the country and the active role of payment banks
after the recent decision to demonetize in India.
In this research paper we have tried to focus that up to what extent that foreign direct investment (FDI) in Indian
context considered one of the most crucial factors either to acquire or transferring investments witnessing
development and growth in its economy. There are many set-up of FDI both inward as well as outward and accordingly
companies should try to do an advanced research before actually investing in a foreign country. We have monitored
each and every aspect of FDI both inward as well as outward in pre demonetization and post demonetization periods.
In the first part of our research we have already analyzed Indian economy in the perspective of IFDI and got published
titled foreign direct investment (influx) from different nations and its impact on economic development in India: “A
detailed study in service sectors and its contribution in overall economic development” in one of international journals.
It has been proved and accepted that FDI (inward or outward) can be a win-win situation for both the ventures whether
home country or foreign country involved. The investors can gain cheaper access to products/services and the host
country can get valuable investment locally as well as internationally. We researchers have focused FDI outward in
country wise, sector wise as well as year wise from India and compared various aspects and implications to its
counterparts.
Demonetisation step of 2016 was somehow different from to earlier steps because of its sudden declaration taking
aback the general public, bankers who were to deal mainly with the situation, as it was feared that if the black market
caught any whisper of what the government was planning, they would find ways to get rid of their illicit cash, and the
initiative would flop on one of its initially-stated goals. During that intervening period, business across all over Indian
economy was disrupted, and cash-dealing sectors like even agriculture, fishing, and other related or unrelated market
were severely affected.
In spite of a number of criticisms of the big step of demonetisation, it is true that proponents of demonetisation
certainly had good intentions, which proved with the overwhelming response to the government in the assembly polls
of Feb. 17 and March 17, but the suffering it has caused to millions of Indians is irreparable.
The step worked as a trigger point for the general public to adopt the alternate banking delivery channels, as
momentarily, it was a no cash situation. Government has come out with a number of incentives on cashless
transactions like waiver of surcharge on transactions in cashless mode. But the stagnancy in these operations after
December 2016 indicates something else. Is the society again tilting towards cash after the normalcy of situation and
relaxation of cash withdrawal norms.
As far the other motives behind the big step are concerned, only the time can tell as the steps for curbing of black
money may have far reaching effects and will be visible in the time to come. It is hoped that the general public will
adopt the cash less mode of banking transactions wholeheartedly in their own interest and understand the need of
hour. It is also hoped that the huge amounts spent on technology up gradation by the banks for secured and hassle free
alternate channel banking, will not go waste and the trigger for cashless adoption by the general masses will gain
momentum.
India is known as the land of kirana stores, as it has a number of small unorganized retail shops at every nook and
corner. This has always made shopping very accessible and time saving in India. But in the past few years this highly
unorganized face of the Indian industry has undergone tremendous change. While transforming itself into a more
organized sector,the sector has contributed, on an average, about 10% to the country’s GDP every year. The dawn of the
Internet era opened up amazing new possibilities and e-commerce has emerged as a perfect amalgamation of
technology and marketing acumen. The Internet has been increasingly used to facilitate online business transactions
between business entities and consumers for various products and services. A number of retailers have set up systems
to accept orders over the phone,apps and or even on websites which in itself can be an independent business model.
One can buy Indian grocery items online from online grocery stores at the most affordable prices and can avail heavy
discounts on each purchase in the form of loyalty points or loyalty cards. This study explores theeffect
ofdemonetisation policy (launched on 8th November’2016) on grocery retailinginIndia.The study is exploratory in
nature and secondary data was used to collect the data. It was found that the sudden cash crunch evoked by
demonetization proved to be a significant motivator for transacting online. Even the connoisseurs of kirana stores and
roadside stalls for grocery shopping turned to e-stores for their daily necessities. Although demonetization successfully
created a space for e-stores esp. e-grocers in the retail sector, its role is limited only to being a switching barrier.
APA Citation
Umamaheswari, D., & Suganthi, M. K.
(2017). Demonetization-Cash Crunch or
Cash Curse. International Journal of Latest
Transactions in Engineering and Science,
2(2), 1-4.
Ghoshal, S. (2017). An impression of
demonetization on Indian economic
slowdown. International Journal of
Interdisciplinary and Multidisciplinary
Studies (IJIMS), 4(3), 284-295.
Pachare, S. M. (2016). Demonetization:
Unpacking the Digital Wallets. We'Ken-
International Journal of Basic and Applied
Sciences, 1(4), 180-183.
Choudhary, V., & Srinivas, V. (2017). After
Effect of Demonetization on Indian
Economy. PARIDNYA-The MIBM Research
Journal, 5(1), 65-71.
Francis, T. B. (2017). A study on the
impact of “India-Demonetization 2016”
on the educated working class of Kerala–
A survey among the faculty members of
the St. Xavier's College for women, Aluva,
Kerala, India. International Journal of
Scientific Development and Research
(IJSDR), Pg, 109-115.
Bharathi, K. (2017). Demonetization:
Impact on Indian Economy. International
Journal of Trend in Research and
Development (IJTRD)
Gupta, C. (2016). Payment Banks and
Demonetization. International Journal of
Research and Science, 1(9), 280-283.
Khan, A., & Faisal, S. M. (2018). Role and
Significance of FDI (Outward) in Indian
perspective An Analysis: Post
Demonetization Period. J Account Mark,
7(276), 2.
Gupta, D. K. (2017). Demonetization and
Its Overall Impact.
Bhat, I. H., & Singh, S. (2018). Examining
the Effect of Demonetisation on Grocery
Retailing in India. Asian Journal of
Management, 9(3), 1208-1212.
