International Journal of Business Analytics and Intelligence

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

A Study on Pre-and Post-Analysis of Demonetization Period:Issues and Challenges


Affiliations
1 Department of Commerce, Dean faculty of Commerce, Chairman, Board of Studies Applied Economics & Business Management, Barkatullah University, Bhopal, Madhya Pradesh, India
     

   Subscribe/Renew Journal


The principle pointed of demonetization was to address defilement, black money, fake money and fear financing. The measure impact of demonetization on consumption, production, investment and savings of the economy. Although demonetization have huge potential benefits in the medium to long term working of the economy but caused some short term disruption in the economy. This paper studies the issues and challenges faced by the common man during demonetization period and analyzed the pre- and post-period of demonetization. The investigation in this paper observed that demonetization affected different area of the economy in the month of Nov-16 and Dec-16 and the effect directed fundamentally in Jan-17 onwards. An increase in banks deposits by 15.7% and 14.9% in Nov-16 and Dec-16 respectively created large surplus liquidity conditions. These were overseen by RBI by the monetary policy. There has been a sharp increment i.e. 9.02% in the number of accounts under Pradhan Mantri Jan Dhan Yojana and the deposits in such accounts have also increased. The paper has also studied the impact of demonetization on the new gateway of electronic payment i.e. NEFT, CTS, IMPS and NACH. During Dec-16 and Jan-17 the IMPS registered the maximum y-o-y growth rate of 157.2% and 177.7% respectively.

Keywords

Demonetization, Black Money, Digitalisation, RBI, GDP.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Prime Minister’s address to the nation through the monthly radio programme, ‘mam ki baat’ broadcasled on 26–27 November, 2016. https://pnonmdio-!ic.in-/# (accessed on 23 December, 2016). The English translation of the broadcut is accessible at http/wwunar€ndruodi-irmm ki bat (accessed on 2l Decembcr 2016).

  • https://rhidocs.rbi.org.in/rdocs/PublicaliotrReporrPdts/vrsroN20l 8tA8972F5582P482B 8846C5 8669C E] 96A-PDF(accessed on 21 December, 2016)

  • http://M.bis.orgl cpmi/publ/d I 55.pdf (ac@sscd oD 26 December,20l6)

  • http://ww.businessstaded.com/article/economy-policy/infographic-68-of-lra,sactionsin india are cash-basedI l6l I1400495 l-html (accessed on 26 December, 2016)

  • https/www.lheguardian.com/btrsiness/20I6/jutr/04/swcde! cashless societycards phonc apps lcaditr8 europe (accessed on 27 Docembet 2016)

  • https://www.thelocal.se/20I60229lwhy+wedenis* inning-theiacetobecome-the-first-cashlesssociet( accessed otr 27 December,2016’)

  • For details see the World Banl Tbe Clobal lindet Da_i”J,*. zor’1 -””*itl” at http://docDments’woddbank’,””r”,, *reOlerl t rlZ6I +OE 1 79167706/!dfl WPs7255’.dfi+ oace=l ra*esed ‘” 2 lanDary,2017r

  • http://www.anpad.org.br/admin/pdf/2013_EnANPAD_MKT1209.pdf

  • http://www.thehindu.com/news/national/demonetization-arun-jaitley-on-atms-going-dry/article9338238.ece

  • http://timesofindia.indiatimes.com/city/chennai/Demonetization-Madurai-Corporation-makes-record-tax-collectionon-a-single-day/articleshow/55374378.cms

  • http://www.thehindubusinessline.com/economy/demonetization-to-increase-eco-size-enhance-revenue-base-says-jaitley/article9324312.ece

  • http://indianexpress.com/article/india/india-news-india/demonetization-hyderabad-civic-body-collects-rs65-crore-of-property-tax-4372156/

  • http://www.thehindu.com/business/Economy/rbi-urgespublic-to-adopt-digital-as-atms-run-dry/article9339020.ece

  • http://dx.doi.org/10.1086/319621.

  • http://www.careratings.com/upload/NewsFiles/SplAnalysis/Impact%20of%20demonetization%20on%20GDP.pdf

  • http://www.careratings.com/upload/NewsFiles/SplAnalysis/Effects%20of%20Demonetization%20of%20500%20and%201000%20notes.pdf


Abstract Views: 463

PDF Views: 0




  • A Study on Pre-and Post-Analysis of Demonetization Period:Issues and Challenges

Abstract Views: 463  |  PDF Views: 0

Authors

S. K. Khatik
Department of Commerce, Dean faculty of Commerce, Chairman, Board of Studies Applied Economics & Business Management, Barkatullah University, Bhopal, Madhya Pradesh, India

Abstract


The principle pointed of demonetization was to address defilement, black money, fake money and fear financing. The measure impact of demonetization on consumption, production, investment and savings of the economy. Although demonetization have huge potential benefits in the medium to long term working of the economy but caused some short term disruption in the economy. This paper studies the issues and challenges faced by the common man during demonetization period and analyzed the pre- and post-period of demonetization. The investigation in this paper observed that demonetization affected different area of the economy in the month of Nov-16 and Dec-16 and the effect directed fundamentally in Jan-17 onwards. An increase in banks deposits by 15.7% and 14.9% in Nov-16 and Dec-16 respectively created large surplus liquidity conditions. These were overseen by RBI by the monetary policy. There has been a sharp increment i.e. 9.02% in the number of accounts under Pradhan Mantri Jan Dhan Yojana and the deposits in such accounts have also increased. The paper has also studied the impact of demonetization on the new gateway of electronic payment i.e. NEFT, CTS, IMPS and NACH. During Dec-16 and Jan-17 the IMPS registered the maximum y-o-y growth rate of 157.2% and 177.7% respectively.

Keywords


Demonetization, Black Money, Digitalisation, RBI, GDP.

References