DEMONETIZATION REALLY BENEFICIAL OR NOT

DEMONETIZATION REALLY BENEFICIAL OR NOT

Aaryan Teli*, Akash Upadhyay2, Mayur Gunjal3, Nitish Singh4

1F4 2024-26  – 021330024518, ITM Business School, Kharghar, Maharashtra, India
2F4 2024-26  – 021330024040, ITM Business School, Kharghar, Maharashtra, India
3F4 2024-26  – 021330024531, ITM Business School, Kharghar, Maharashtra, India
4 F4 2024-26  – 021330124049, ITM Business School, Kharghar, Maharashtra, India
* Corresponding Author E-mail aaryanteli@gmail.com

 

Introduction: The demonetization of 2016 was a fight against black money and counterfeit currency in India. It caused much disarray initially, as people stood in long queues at the banks to deposit old notes. There were cash shortages, adjustments to the online mode of payment, and people began to depend on digital forms of payment, placing their savings in banks instead of cash. While this had some advantages, such as increased online transactions, one of the lingering questions at hand is if it helped as much as had long been hoped. Through this, we can understand the disruption caused by demonetization.

 

Objective: To understand that demonetization was really beneficial or not?

 

Literature Review:

  • “Demonetisation: Impact on the Economy” – This working paper from the National Institute of Public Finance and Policy (NIPFP) provides a detailed analysis of the short- and medium-term economic effects of India’s 2016 demonetization, covering sectors like real estate, agriculture, and tax collections.
  • “Demonetization and Its Impact on Indian Economy” – This research paper discusses the broader economic impacts of demonetization, focusing on reasons behind the policy and its effect on different sectors like small businesses and e-wallet services.

 

Data Collection: Following questions were framed on liner scale with the help of google forms.

Q1.I use more digital payment

Q2.I waited in a long queue to deposit money

Q3.I can’t deposit my whole cash

Q4.I always keep my money in bank account

Q5.I avoid cash transactions

 

Students of ITM Business School were surveyed. For every question mean, standard deviation, standard error, and Z value was calculated.

 

Data Analysis:

 

Q1

Q2

Q3

Q4

Q5

Mean

3.89

3.07

2.87

3.75

3.29

Standard Deviation

1.1361

1.3200

1.2115

1.1135

1.1832

Standard Error

0.1136

0.1320

0.1212

0.1114

0.1183

z

1.7604

0.7575

-0.8254

1.7961

1.6904

Result

Neutral

Neutral

Neutral

Neutral

Neutral

 

 

Conclusion:

  • Students are neutral about using more digital payment.
  • Students neither strongly agree nor disagree that they waited in a long queue for money deposition.
  • Students are neutral on they were unable to deposit their whole cash.
  • Students are neutral on keeping their whole money in bank.
  • Students are neutral on avoid cash transactions.

 

References:

  • National Institute of Public Finance and Policy. (n.d.). Demonetisation: Impact on the Economy.

https://www.nipfp.org.in/publications/working-papers/1772/

 

 

 

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