IMPACT OF DEMONETIZATION ON

SENIOR CITIZENS OF INDIA:

A STUDY OF SENIOR CITIZENS RESIDING IN MUMBAI SUBURBS

A Research Paper
Submitted for the Internal Project of

International FInance
B.Sc. Finance Sem V

Submitted by
ABC 14
XYZGH 28
Fghgdh 31

SVKM’s NMIMS Anil Surendra Modi School of Commerce

2020
 ABSTRACT

Demonetization is the act of stripping a currency unit of its status as legal tender.
Demonetization is necessary whenever there is a change of national currency. The old unit of
currency must be retired and replaced with a new currency unit.

The announcement by the Indian Prime Minister, Shri Narendra Modi about the demonetization
of 500 & 1000 rupees notes on 8th November, 2016 at 8pm, came as a surprise to the Indian
citizens. There are multiple reasons why nations demonetize their local units of currency. Some
reasons include to eradicate the shadow economy of India which is bigger than the actual
economy, to combat terrorism, to combat corruption, and to discourage a cash system. The
process of demonetization involves either introducing new notes or coins of the same currency
or completely replacing the old currency with new currency.

One of the most affected groups due to this sudden change are Senior Citizens as they may lack
the physical and mental ability to secure their lifelong savings. Indian economy predominantly
relies on cash as a medium of exchange and due to their habits; senior citizens tend to hold
cash (Liquidity preference) for their future security. And therefore, going towards a cashless
economy where there are a large number of new users is not a cakewalk for them.

Many senior citizens do not even hold accounts or have valid government identification; policy
making is half success unless its implementation is in effect.

This research paper studies the various parameters which will lead to the effective
implementation of the demonetization policy on senior citizens and analysis of its effects post
demonetization.

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Table of Contents
Introduction ........................................................................................................ 3
Review of Literature .......................................................................................... 7
Research Methodology ....................................................................................... 8
Analysis.............................................................................................................. 10
Findings, Recommendations and Conclusion ................................................ 19
References and Bibliography .......................................................................... 21
Annexure .......................................................................................................... 27

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Introduction

Demonetization is the act of stripping a currency unit of its status as legal tender.
Demonetization is necessary whenever there is a change of national currency. The old unit of
currency must be retired and replaced with a new currency unit.
The opposite of demonetization is remonetisation where a form of payment is restored as legal
tender.
There are multiple reasons why nations demonetize their local units of currency. Some reasons
include to combat inflation, to combat corruption, and to discourage a cash system. The process
of demonetization involves either introducing new notes or coins of the same currency or
completely replacing the old currency with new currency.

In 2015, the Zimbabwean government demonetized the Zimbabwean dollar as a way to combat
the country’s hyperinflation that was recorded at 231,000,000%. The 3-month process involved
expunging the Zimbabwean dollar from the country’s financial system and solidifying the US
dollar, Botswana pula, and South African rand as the country’s legal tender in a bid to stabilize
the economy.

Another example of demonetization occurred when the nations of the European Monetary
Union adopted the euro in 2002. In order to switch to the euro, authorities first fixed exchange
rates for the varied national currencies into euros. When the euro was introduced, the old
national currencies were demonetized. However, the old currencies remained convertible into
euros for a while so that a smooth transition through demonetization would be assured.

The Coinage Act of 1873 demonetized silver in favor of adopting the gold standard as the legal
tender of the United States. The withdrawal of silver from the economy resulted in a contraction
of the money supply, which subsequently led to a 5-year economic depression in the country.
In response to the dire situation and pressure from silver miners and farmers, the Bland-Allison
Act remonetized silver as legal tender in 1878.

History of demonetisation in India

The term demonetisation is not new to the Indian economy. The highest denomination note
ever printed by the Reserve Bank of India was the Rs 10,000 note in 1938 and again in 1954.
But these notes were demonetised in January 1946 and again in January 1978, according to
RBI data. Since less than 5 percent of population in India had access to such notes and most
banks never had such currency notes, demonetisation did not have a big impact on the country.
The decision was taken to curb the illegal use of high denomination currency which was used
for corrupt deals in the country.

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In 2016, the Indian government decided to demonetize the 500- and 1000- rupee notes, the two
biggest denomination notes. These notes accounted for 86% of the country’s cash supply. The
government’s goal was to eradicate counterfeit currency, fight tax evasion, eliminate black
money gotten from money laundering and terrorist financing activities, and promote a cashless
economy. By making the larger denomination notes worthless, individuals and entities with
huge sums of black money gotten from parallel cash systems were forced to convert the money
at a bank which is by law required to acquire tax information from the entity. If the entity could
not provide proof of making any tax payments on the cash, a tax penalty of 200% of the tax
owed was imposed.

However, with the latest round of demonetisation, the common public and bankers are
undoubtedly facing hardship since more than 85 percent of currency in circulation has been
rendered illegal in one single stroke. Demonetisation is surely hampering the current economy
and will continue to do so in the near term and will also impact India’s growth for the coming
two quarters but will have positive long lasting effects. The question that arises is why
demonetisation was required at this point of time. There are certain pros and cons of
demonetisation.

Merits
1. One of the biggest benefits of this move is that it is going to drastically affect the corrupt
practices. People who are holding black money in cash will not be able to exchange
much as they would be in a fear of getting penalised and prosecuted by the authorities.
Enemies of the country which are involved in counterfeit currency and terrorism will
not be able to continue it further for quite some time at least. The smuggling of arms
and dealing with the terrorist will not sustain further as all of the money will be on
record now.

2. Secondly, the banking system will improve as it will slowly head towards a cashless
society. Cashless society will increase credit access and financial inclusion. The
existing white money of people will be known to the government and it will remain
with banks so that it can be put on loan, and interest can be generated from it (though
interest rates would fall) with a corresponding fall in Inflation. Further Banking System
will get a boost, as more than Rs 7-8 lakh crore base money (new legal money) will
enter the system. However, it needs to be seen how much money actually remains in
the system, once the cash withdrawal limits are eased.

3. Thirdly, it will reduce the risk and cost of cash handling as soft money is safer than
hard money. It will also reduce government liability. Since every note is a liability for
the government, the old currency will become worthless for those people, who choose
not to disclose their income. Thus, this will extinguish government's liability to that
extent. It is expected approximately Rs 5 lakh crore may come to the government in the
form of extinguished RBI liability, taxes and penalties. This amount is enough to take

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 care of India's entire fiscal deficit for one year or more. It will also reduce tax avoidance.
Whatever money will be deposited or exchanged, authorities will keep a track of it and
they will be extra cautious in this period. Dealing in this period in sectors like jewellery
and real estate will be on radar and those entering into Loan transactions may also
undergo tax scrutiny. Search and Seizure activities of the IT Department will also rise
to curb such malpractices. Limits have already been prescribed for reporting to the IT
Department those bank accounts in which excess cash deposits are being made in this
50-day window (Rs 2.5 lakh in case of individuals and Rs 12.5 lakh in case of firms).

4. Importantly, in the longer run, tax and interest rates on loans are expected to come
down as higher income tax collections arising from better compliance would offer
scope to reduce rates over the long term. This, in turn, will drive up disposable income.
This can give a positive impact on consumption demand in long term.

Demerits

1. The liquidity squeeze caused by demonetisation will be negative across sectors with
high level of cash transactions. Real estate, jewellery, retailing, restaurants, logistics,
consumer durables and luxury brands, cement and some segments in retail/SME
lending space will be facing short term instability. Those companies with high level of
debt will face more pressure and can face loan defaults.

2. Secondly, there will be an added replacement costs of currency. We cannot ignore the
increased cost of operating ATMs need to be refilled more often and also it will be a
huge burden on banks. Initially, it is very difficult to create a cashless society as more
than 50 percent of Indian population is not well versed with card transactions. Also for
these initial months, it will be very difficult to make cash transactions of a higher
amount. But the government is taking steps to improve liquidity into the system and
reduce inconvenience as much as possible. India is certainly going to experience
"Acche Din" in Modi's regime. The decision of this surgical strike on black money was
not taken in a day or two. Rome was not built in a day and similarly, this plan is the
result of Prime Minister's meticulous planning and never ending fight against
corruption. As a result, he has successfully made the right stroke at the right time.

3. Further, the penal provisions are hefty enough to ensure that corrupt practices will find
it hard to take roots again. Despite certain short term troubles, demonetization is
certainly going to give a boost to the Indian economy in the long run. As of now, all of
us should stand and support this bold move of our Prime Minister and help those needy,
around us.

Bank Notes in Circulation by Value

86% of the total currency in
circulation by value comprised
of INR 1,000 / 500 notes
5
 243
US$ Bn
216 14%
189 15%
16% 39%
39%
40%

46% 48%
44% 86%

Mar-14 Mar-15 Mar-16

INR 500 Note INR 1,000 Note Other Notes

Source: Nomura

High denomination
currencies had grown
Bank Notes in Circulation by Volume at a very fast rate

109

76

40

All Notes INR 500 Note INR 1,000 Note

Source: Nomura

• On 8 Nov, 2016 at 8:00 PM, the Government of India announced demonetization of

‘High Denomination Currency’ (HDC) notes of INR1,000 and INR500, effective
midnight
• Effectively 86% of ~US$250 Bn of currency in circulation was made
redundant overnight
• Will be replenished over time with new denomination currency
• The move was aimed at curbing the unaccounted cash (black money) in the system, as
well as to address the counterfeit currency
• In line with Government’s consistent agenda to tackle black money

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Consensus view is that the move is a positive in the long run, but may lead to short term
challenges

Review of Literature

Anubhuti Maithani (2016) in her essay titled “currency demonetization” highlights the
objectives of the currency demonetization in India. Although people with black money
obviously stands the most affected, there are several implications that have to be faced by the
average middle class person, farmers, banks and the economy as a whole.

Although there will be an apparent inconvenience to the common man initially, given the short
span of time to get these currency notes exchanged or deposited in banks and post offices, but
he/she is expected to adapt to the new currency system in a reasonable time.

Rural area farmers will have slightly more inconvenience keeping in mind that this is the Rabi
crop harvest season, where the farmer must have earned cash for their harvest.

Also, in rural areas the exchange and deposit system can be expected to take a long time in
case there is a bank in the village and inconvenience in terms of transportation, additional
expenses and time is easily foreseeable in case there is no bank in the village and the people
have to go to the city for this purpose.

The banks, however, are expected to experience two types of problems. One is the logistical
problem of handling all the money in case a large number of people choose the easier way of
depositing all their cash in their bank accounts or of providing smaller denomination currency
notes in case there is a huge demand for withdraw or exchange.

The other problem is the managerial difficulty of handling long queues and the overburden of
work in the next couple of days. This expectation gave rise to the government’s decision of
shutting down banks for public dealings for one day and instead let them deal exclusively with
issues relating to deposit or exchange the demonetized currency notes.

In terms of the impact on the economy, there has been speculation about deflation in the
economy by one set of people due to expected fall in corruption and black money while the
other expects inflation to take place due to speculated increase in investment of Gold, real estate
and foreign currency.

Anubhuti Maithani (2016) also explained that Narendra Modi’s decision has also had its share
of criticisms and concerns already. These span from the inconvenience caused to the common
man to the assertion that the plan does not solve the problem at all.

The obvious concern raised is of the impending inconvenience which will be caused to
common man due to the operation of this decision.

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Ila Patnaik (2016) analyses the impact of demonetization of Rs. 500 and 1000 notes and how
black money and its circulation will be curtailed. She says that the main objectives of replacing
old currency notes by printing new notes is to tackle the problem of fake currency notes in
circulation. In India, there is fear that counterfeit currency is being used for financing terror as
well as other subversive activities. If security features of the present notes are weak and there
is rampant counterfeiting, there is a need to replace these with new notes that have better
security features. Usually, this is done gradually. So, for instance, the RBI could have started
issuing new Rs 500 notes, allowed old notes to be exchanged for new ones and issued a deadline
after which the old notes would not have been legal tender.

Ila Patnaik (2016) evaluates that some see this move as a way of pushing the country forward
towards a cashless economy. There are two problems with this perspective. First, it is not that
high denomination currency notes will go away. The existing notes will be replaced by new
notes. Second, the cashless ecosystem is not ready to support a whole range of new users; this
push is premature. As the queuing up for new bank notes indicates goods and services such as
agricultural products, milk, vegetables, medicines, hospital bills, and a large number of other
legitimate uses are transacted mainly using cash.

Mohaq Siddiqi (2016) highlights that he real issue which revolves around this is the
implementation process. It in itself is a difficult task. India being one of the largest developing
countries has a very slow democratic system. Policy making is half success unless its
implementation is in effect. In a country where only 3%(approximately) of its population is tax
payer this will further lower the burden on the government and those who were bearing the tax
burden due to inefficiency in the implementation of tax policy.

Arun Kumar (2002) critically examines the standard explanations for the causes and
consequences of black income generation and the methods suggested for curbing it. His
incisive analysis lays bare the pernicious effects of black income on the macro economy and
the resultant inefficiency, waste and sub-optimality in the economy and society. It also
spotlights the role of criminalization and the emerging nexus of the businessman, politician
and bureaucrat in perpetuating the black economy. Showing the limited success of technical
remedies, Arun Kumar (2002) argues in favour of structural remedial measures, which include
empowering people through a right-to-information act.

Frank Holmes (2016) evaluates how the Indian economy might face difficulties with going
cashless. Because India’s economy relies predominantly on cash, the effects will be far greater.
ATMs are scarce, and few rural Indians have a credit or debit card. An estimated 600 million
Indians—nearly half the country’s population—are without a bank account. Three hundred
million have no government identification, necessary to open an account. By comparison, about
7 percent of Americans are unbanked, with an additional 20 percent underbanked, according
to the Federal Deposit Insurance Corporation (FDIC).
This is one of the main reasons why Indians have traditionally held gold in such high demand.
Many have little faith in banks and other financial institutions, preferring instead to store their
wealth in something more reliable and tangible.

Research Methodology

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Research Motive
Demonetization is a topic of prime importance and very relevant to be discussed because on
November 8, 2016 almost 86% of India’s currency was made redundant overnight. So, it is
important to study the impact of such a big move on one particular class of people i.e. senior
citizens. The research paper aims at analysing the impact of demonetization on senior citizens
living in Mumbai in the suburban areas.
Research Questions
RQ1: What is the specific economic impact of demonetization on senior citizens residing in
the suburbs of Mumbai?
RQ2: What is the impact of demonetization on Senior citizens’ usage of digital
money/wallets?

Objectives of the study

1. To examine the impact of demonetization on senior citizens in Mumbai.
2. To assess to the number of senior citizens who use e-wallets or digital money
3. To evaluate and calculate the number of senior citizens have bank accounts
4. To analyse how many senior citizens do banking transactions
5. To analyse and evaluate the support for demonetization from senior citizens

Research Design
Nature of Study
The study is based on ex-post facto and historical research. The period post demonetization
of 500 and 1000 INR notes has been taken as a time frame for research work.
Scope of Study
The scope of the research is the study of senior citizens i.e people above the age of 60 years
around suburban areas like vileparle and andheri. The time period for analysis is from the
time demonetization was announced i.e. November 9, 2016.

Collection of Data and Sample Size

The study is a blend of both primary and secondary data. The primary data includes
questionnaire survey filled up by 63 senior citizens in and around vile parle and andheri area
in Mumbai. The senior citizens include both men and women having varied income levels
and different levels of education.

Hypothesis
1. Null Hypothesis Ho: Senior Citizens do not use digital money
Alternate Hypothesis Ha: Senior Citizens make use of digital money

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 2. Null Hypothesis Ho: Senior Citizens do not have bank accounts
Alternate Hypothesis Ha: Senior Citizens have bank accounts

Analysis

The analysis of senior citizens post demonetization is done on multiple parameters like their
level of education, money required for daily expenses, type of bank accounts, senior citizens
who exchanged notes, etc. In total, 13 parameters are taken.

1) EDUCATION
Table 1:Educational level of Senior citizens

LEVEL NUMBER
Illiterate 5
Primary 13
Secondary 35
Higher Education 6
Professional Degree 4

Figure 1

Source: Economic Survey 2018-19

The classification of education shows 5 different categories which are defined as follows:
• Illiterate- Senior citizens who don’t know how to read and write

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 • Primary- Senior citizens who have studied upto VII standard
• Secondary- Senior citizens who have studied from VIII to XII standard
• Higher Education- Senior citizens who have studied Graduation and above
• Professional degree- Senior citizens who have studied C.A., CFA or any other
professional course
The above the mentioned pie chart on educational classification shows that 56% of senior
citizens have a educational level of VIII –XII standard (Secondary education). This means
that a majority have an ability to understand and comprehend different issues highlighted in
the economy.

2) MONEY REQUIRED FOR DAILY EXPENSES

Table 2:

EXPENSES (in Rs) 50-150 150-500 500-1000 Above 1000

Number 21 28 10 4

Chart No. 2

The chart no. 2 talks about average money required to fulfil daily expenses. The major
population comes in the category of 150-500 INR per day which clearly indicated that this
population belongs fairly to middle income group.

3) DOCUMENTS POSSESSED

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This category talks about a few Know your Customer Documents like Aadhar Card, Pan card,
etc. Almost the entire population possess aadhar card or pan card or both.

Number of Senior Citizens having KYC documents:

NONE ONLY AADHAR ONLY PAN BOTH

3 12 2 46

4) TYPE OF BANK ACCOUNT

This information has been taken to assess the kind of bank accounts owned by senior citizens
and to also know whether they have bank accounts at all or not. The table and chart no. 4
clearly indicate that the maximum population has saving accounts.

ACCOUNT NUMBER OF SENIOR CITIZENS

NONE 3
SAVINGS 42
CURRENT 1
BOTH SAVING & CURRENT 8
JAN DHAN 5
POST OFFICE 1

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 Chart No.4

5) SENIOR CITIZENS, USING DEBIT/ CREDIT CARD, INTERNET/

MOBILE BANKING
The parameter here analyses whether the senior citizens use smart money and internet and
mobile banking services. The pie chart no. 5 suggests that a majority of 59% still don’t use
smart money or mobile or internet banking.

USERS 24
NON USERS 35

Chart No. 5

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6) EXCHANGE OF NOTE FUNCTION
In this parameter, we analyse the percentage of senior citizens who have exchanged notes in
the bank after the demonetization announcement. 57% of people have exchanged notes in
bank.
EXCHANGED 36
NOT EXCHANGED 27

Chart No. 6

7) DEPOSITS IN BANK
This parameter analyses as to how many senior citizens have deposited old notes in bank post
the announcement. The bar graph clearly shows that 42 senior citizens have deposited old
notes in bank post the announcement.
DEPOSITED 42
NOT DEPOSITED 21

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 Chart No. 7

8) MODE OF RECEIPT OF INCOME

The mode of receipt of income is how senior citizens receive their monthly income i.e. in
cash, cheque or both. Majority of senior citizens still receive their monthly income in
cash.(29 persons)
MODE OF RECEIPT NUMBER
No Income 6
Cash 29
Cheque 16
Both Cash & Cheque 12

Chart No. 8

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9) Liquidity Crunch
This parameter talks about any lack of cash faced by senior citizens. Almost 56% of senior
citizens are facing a cash crunch post the announcement.
YES 35
NO 28

10) Comfortable with Banking Transactions like depositing cash, making

cheque payments
This parameter talks about the ease of doing banking transactions which is prevalent in the
senior citizens. 59% of our population is comfortable in doing the regular banking
transactions.
Ease of doing banking transactions
YES 37
NO 26

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 Chart No. 10

11) REGULAR TRANSACTIONS AFFECTED

Almost 50% of senior citizens said that their regular transactions got affected because of the
announcement of demonetization.

Chart No. 11

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12) HAPPY WITH THE DEMONETIZATION OR NOT
This parameter shows that 87.3% of senior citizens are happy with the announcement of
demonetization despite the little problems that they are facing.

Chart No. 12

13) Senior citizens using E -Wallets

The parameter analyses the number of people who have started using digital money or e-
wallets post demonetization. The chart no. 13 clearly indicates that 93.65% of senior citizens
don’t use digital money like Paytm, freecharge, etc. even post demonetization.
Particulars NUMBER OF SENIOR CITIZENS
People having E Wallets 4
People not having E Wallets 59

Chart No. 13

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Findings, Recommendations and Conclusion

Findings
1. The Null Hypothesis Ho: Senior Citizens do not use of digital money will be accepted
as majority of 93.65% senior citizens are not using e-wallets or digital money.

2. The Null Hypothesis Ho: Senior Citizens do not have bank accounts will be rejected
as almost the entire population has some kind of a bank account
There were some general problems observed faced by senior citizens which are stated as
follows:
1) Non pensioner senior citizens with only interest incomes will earn less due to fall in
interest rates.
2) Due to withdrawal limit senior citizens cannot cater to household expenses.
3) Cannot encash bearer cheques of small denominations due to absence of small
denomination currencies in bank.
4) Gold, the only asset security for housewives in Indian Households, are not happy with the
gold limits.
5) For most businesses, transactions have declined, flow of money has stopped and dead
stock is rising.
6) Senior Citizens who wish to sell property in their native place are unable to sell due to
currency regulations.
7) For Senior Citizens employed on daily wage, their work pattern is same as before but
payments have stopped due to non-availability of change.
9) Due to raising of deposit limits for women’s people have successfully secured their black
money.
10) In villages, banks are far off, and its difficult for account holders to travel such distances.

Recommendations
There has been little doubt in anyone’s mind that demonetization has been an excellent idea in
waging a war against black money and fake currency racket, aided and abetted greatly by
Pakistan to fan and fund terrorism. The criticism has chiefly revolved around the manner in
which the entire mammoth exercise has been executed. Virtually the entire nation, especially
the weakest sections, comprising millions upon millions of people, have paid and continue to

19
pay the price for the sins of the few who are the prime culprits in the generation and hoarding
of black money.

The exercise could have been better handled, without compromising the confidentiality of the
exercise (which everyone agreed was necessary).
There has been no clear alternate plan that may have put the population to less inconvenience
without compromising confidentiality of the exercise.
A large part of the failure of the senior functionaries in the government and RBI in managing
the exercise smoothly arises from the mix up of the demonetization problem with the
introduction of the new currency problem.
The solution is ridiculously simple; not unlike some of those wire puzzles that look virtually
unsolvable at first, but once you know the solution, it looks ridiculously easy, and you may
even be forgiven if you think you actually had the problem in your grip all along.
The solution to better implementation of the plan lies in separating the demonetisation problem
from the new currency problem. Suppose the following had been the sequence of events:
The government could have announced openly, say on November 1, its intention to introduce
the new currency of Rs 2,000 into the economy (It might have helped if they had kept the size
of the currency the same as, say the Rs 1,000 notes).
All the banks could have been given 15 days to configure their ATMs to enable them to accept
the new currency at the end of the 15-day period. It could also have been publicly announced
that the new currency would be available on the ATMs effective, say November 16. Given the
spread out time, none of the normal operations of ATM would have been impacted unduly.
There was no question of the confidentiality of anything, since the exercise would have been
only about introduction of new currency. This would have taken care of all the software and
loading issues substantially.
The PM could have gone on the air, say on November 15 night and announced the
demonetization move effective midnight. Under this situation, as the ATMs would have been
more or less ready to dispense the new currency, and the kind of disruption witnessed now may
have been substantially mitigated, if not altogether eliminated. No exercise of this magnitude
can be without substantial disruption to the everyday life, especially of those at the bottom of
the pyramid.
Nevertheless, following are the recommendations for the senior citizens so that any future
hassles can be avoided.
1. The deposit limit of 2.5 lakhs INR can be increased for the senior citizens to 3.5-4 lakhs
INR.

2. Gold limit for senior citizens can be increased so that it provides them with some
security in times of distress.

3. Banks should allow hassle-free without queue access to senior citizens to ease the
process of depositing cash.
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 4. Workshops can be organized to create more awareness amongst senior citizens about
the effects of demonetization and to help them move towards being cashless.

Conclusion
It is a tragic reality, that whether it is natural disasters like floods, epidemics or water scarcity
or inflation or riots or war or demonetization, hoarding or black-marketing, it is those in the
lowest socio-economic strata that pay the maximum price, while those at the top, who are often
the prime cause of most disruptions, virtually go without having to share the pain. It seems
tragic that the lion’s share of the burden of cleaning up of the country’s corrupt politicians,
corrupt babus, corrupt police, corrupt judiciary, corrupt builders, corrupt land-sharks, hoarders,
assorted black-marketers, rioters, terrorists et al should fall upon the entirely innocent poorest
of the poor. Worse, the successive governments over seven decades have done little to improve
the life of the majority of these down-trodden.
Perhaps the PM’s good intention should have started with electoral reforms, land reforms,
stamp-duty reforms, Lokpal Bill, locking up of the real thugs, whether among politicos,
businessmen or builders, rather than dish out amnesty schemes which for all practical purposes
incentivise the racketeers – the prima donnas who are seldom caught or their ill-gotten monies
rarely confiscated. Had the government initiated these measured before the demonetization
exercise, the common man would have felt assured that his suffering was worth the price and
would have felt much more encouraged.

References and Bibliography

21
• Kumar Arun (2002), The Black Economy in India, Penguin books

• Bhatt, Abhinav (8 November 2016). "Watch PM Modi's Entire Speech on

Discontinuing 500, 1000 Rupee Notes". NDTV India

• Damodaran, Harish (9 November 2016). "Are banks equipped to replace 2,300 crore
pieces of Rs 500 and Rs 1,000 notes?". The Indian Express.

• Kumar Uttam (12 November 2016). "The measure is 'anti-poor': When BJP opposed
demonetisation during UPA govt". Hindustan Times

• Gopika Gopakumar, Vishwanath Nair (8 November 2016). "Rs 500, Rs 1000 notes
may be back, if history is a guide". Live Mint.

• Appu Esthose Suresh (12 November 2016). "Why govt's demonetisation move may
fail to win the war against black money". Hindustan Times.

• Saha, Manojit (26 August 2016). "What is Unified Payment Interface?". The Hindu.

• Sanjeev Singh (26 October 2016). "Not a secret? Modi's ministers had leaked info
about scrapping of Rs 1,000 in April". Indiasamvad.co.in.

• S, Arun (13 November 2016). "Swedish ICT sector wouldn't have been so successful
without Indian help". The Hindu.

• Rowlatt, Justin (14 November 2016). "Why India wiped out 86% of its cash
overnight". bbc.com.

• Maithani Anubhuti (2016), An Essay on Demonetization

http://www.lawctopus.com/currency-demonetization-essay-anubhuti-maithani-
nalsar/#

• Patnaik Ila (2016), Impact of Demonetization, National Institute of Public Finance

and policy
http://www.nipfp.org.in/blog/2016/11/14/impact-demonetization/

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 ANNEXURE I

This is a sample questionnaire of the demonetization survey that was undertaken.

Personal Information
1. Name ________________________________________________________
2. Education _____________________________________________________
3. Occupation ____________________________________________________
4. Age ________________________________
5. Gender: Male/Female/Transgender
6. How much money do you require for daily expenses? ___________________________

7. Which of the following documents you possess?

a) Aadhar card
b) PAN card

8. What kind of bank account do you have?

a) Savings account
b) Current account
c) JhanDhan account
d) Post office account

9. Which of the following do you use?

a) Debit card
b) Credit card
c) Internet banking
d) Mobile banking

Demonetization information-
1. According to you, what has been the reason for demonetization?
a) To curb terrorism
b) To reduce corruption
c) To remove fake currency notes
d) To reduce black money
e) Any Other____________________________________________________________

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 2. How did you come to know about demonetization?
a) TV
b) Friends & relatives
c) Newspaper
d) Radio

3. After demonetization, have you started using e-wallets?

a) No
b) Yes, which
i.Paytm
ii.Freecharge
iii.Mobikwik
iv.Other- __________________

4. Did you use the exchange of note function?

a) Yes
b) No

5. How difficult it was to exchange your currency after this announcement?

6. Have you Deposited your currency? How long did it take?

7. What is the mode of receipt of your income? Has there been a change ex
post?And are you comfortable with the change?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

8. Were the regular transactions affected because of this?

a) Yes
b) No

9. Are you facing any difficulty after this announcement?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

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10. Will your demand for money in the form of cash be the same as it was prior to
demonetization?
a) Yes
b) No

11. Do you face any liquidity crunch at the moment?

a) Yes
b) No

12. What different efforts did the bank take to smoothen the process?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

13. Do you know how to do banking transactions like depositing cash, making
cheque payments etc?

a) Yes
b) No

14. Are you a pensioner?

a ) Yes

b) No

15. If No, are you still working with a stable source of income?
a)Yes
b)No

16. According to you, how this demonetization could have been done better?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

17. Any suggestions, insights to the PM for the same?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

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Key Deliverables

RollNo. 1 Aakash : Introduction, research methodology

Roll No. 2 Aditi: Review of Literature, research methodology , analysis
Roll No. 5:

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