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(ECONOMICTIMES.COM Nov 09,2016)

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REVIEW OF LITERATURE

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P

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CHAPTER3:RESEARCH METHODOLOGY

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OBJECTIVES OF THE STUDY:

The objectives are designed to have a particular direction to study like what aspect is to be studied. A topic
can be studied from various parameters, the objectives designed for a project gives an hint that in what
manner the topic is studied, what is the flow of project, what are the variables selected for the project, etc.

To discuss the various marketing strategies that can be adopted while facing an environmental change.

To design steps to tackle environmental change while the organization is facing a resource crisis.

To study the experience of impact of demonetization in various countries in past years;

To analyse the current immediate impact of demonetization on Indian economy.

To workout the probable consequences of Demonetization.

To understand meaning and reasons of demonetization.

To study the sector wise changes in the economy.

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HYPOTHESIS OF THE STUDY:

Hypothesis is referred as the assumptions made by an individual to study the research project. These
assumptions are made in a way to satisfy the objectives framed for the project. Framing of hypothesis is an
important part of the research as in this step the research problem or the problem statement is designed on
which the entire research is based.

The hypothesis or the research problem of the study is designed in such manner to find out the relationship
between the variables,i.e does the effect has any impact on the other. We can also say that following
hypothesis will let us know how closely they are correlated with each other. In order to study this topic 2
hypothesis are framed.

Hypothesis 1:-

Ho:There is no significant relationship between pre and post demonetization period.

H1:There is significant relationship between pre and post demonetization period.

Hypothesis 2:-

Ho:There is no significant impact of money supply on Indian Economy during pre and post demonetization
period.

H2:There is significant impact of money supply on Indian Economy during pre and post demonetization
period.

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RESEARCH GAP

A larger number of studies have been conducted on the subject at national as well as international level.
Few researchers have tried to evaluate Impact of demonetization on the Indian economy. Therefore the
present study aims measure the impact of Demonetization in pre and post period and also tells us how it has
affected the various fields in the economy. A pie chart explains the role of demonetization on the Indian
economy in certain period of time. Research gap helps to focus on the area which is yet to be explored or is
under explored. It could be (size,type,location,etc.),research method, data collection or analysis of data and
other variables and conditions. It is also considered as a missing piece in research literature.

SIGNIFICANCE OF THE RESEARCH

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During the pre demonetization period,RBI has come out with its annual report giving a balance sheet of
demonetization implemented 21 months ago. Of Rs 15.41 lakh crore demonetized currency notes of Rs 500
and Rs 1000 denominations, only Rs 10,720 crore did not reach to the Reserve Bank of India.

This means only 0.7 percent currency notes were junked in the exercise. While announcing demonetization
on November 8 in 2016,PM Narendra Modi had outlined three broad objectives to curb black money,
corruption and stop terrorism. These objectives have always been debateable for the lack of accurate
verifiable data. Indian economy lost 1.5 percent of GDP in terms of growth. That alone was a loss of Rs
2.25 lakh crore a year.

During post demonetization RBI dividend reduced to half of the amount, and also India’s money market
had the overall circulation of banknotes worth Rs 17.97 lakh crore On November 4,2016.The banned
denominations constituted 86.4% of the total money in circulation.Today,according to the RBI,overall
banknotes in circulation are worth Rs 18.03 lakh crore(March 2018).This means the volume of currency in
circulation is 9.9 percent more compared to March 2016-level.

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DATA COLLECTION METHOD

The data collection method means the various sources from where the data has been collected by the
researcher. There are several methods for data collection, especially in the surveys.

For the purpose of Research, the primary data was collected through a close ended questionnaire which was
designed pre hand and an online survey was done using google forms. Close ended questionnaire is the best
method for data collection as uniform observations are maintained through it.

For the purpose of secondary data collection, the researcher has used various materials such as
newspapers,websites,articles,etc related to the topic. Due to unavailability and shortage of time books
weren’t used. The secondary sources helps to explain the review of literature of the project and helps to
provide detailed information related to the topic.

RESEARCH DESIGN:

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A research design is the detailed print which is used by the researcher to guide a research study towards its
objectives. It helps to collect, measure and analyse the data.

The present study seeks to find out the people’s opinion towards demonetization. The study also aims at
findings out the impact of demonetization on each and every individual and also the impact on Banks,
Indian economy.

The study on impact of demonetization is quantitative in nature. It is structured, standardized and a question
based interview.

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SCOPE OF THE RESEARCH

It Is early to come to any conclusions. Few months results will not help to conclude the long term impact.
Demonetization has a wider scope in the Indian economy in respective fields. Here I am mentioning only
two fields.

Widened scope for Retailers:CDFI’s executive director Krishnan Dharmarajan and principal architect of
digital innovation lab led the study.

“We started our research two years back looking at how kirana stores go cashless-what are the drivers, what
are the barriers and the cashless ecosystem around the Kirana stores. Our study was to find out how poor
can be central to the technology –driven transaction”,Dharmaranjan said.Around 63 percent of the retailers
wanted to go cashless, which was about 31% before the note ban. He also said that more digital interface
would help create a transaction history for the small retailers and enable them to get loans from the banks.
This would lead the way for more entrepreneurs in the market from different parts of the country.

Demonetization affects farmers: The first method to link the farmer with digital payments platform was
introduction of Kisan Credit Card.Since then, various other schemes and programs have been launched to
empower the farmer. Flexible loans in presence of adequate capital with the banks is indeed a matter of joy
to the farmers. To sum up, flexible loans, quick funds transfers, easy access to funds through ATM’s and
concrete crop insurance policies are some of the amenities that the farmer will get within a certain period of
time.

LIMITATIONS OF THE STUDY:

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Limitations of a research project arise when there are uncontrollable variables which are difficult in
controlling it.It helps to maintain accuracy of the output. However ,for this study only 65 responses were
taken into consideration.

The period of research was short hence the researcher was unable to gather more responses.

The research sample size was limited.

The applicants responded the set of questions enthusiastically. The set of questions designed by the
researcher helps to derive the actual desired output for the solution.

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CHAPTER4:DATA ANALYSIS

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YES NO
92.2% nil

The applicants were asked whether they know about demonetization, to which 92.2%applicants responded
as yes .Few applicants were not aware and few were not sure.

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YES NO MAYBE
35.9% 29.7% 34.4%

Out of all the applicants,35.9% mentioned as Yes.34.4% mentioned as maybe.However 29.7% did not
agree.

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POSITIVE NEGATIVE BOTH
26.6% 17.2% 56.3%

Applicants were asked whether there was a positive or a negative impact of demonetization, where only
26.6% applicants mentioned as positive impact,17.2% mentioned as negative and majorly 56.3% applicants
agreed with both positive and negative economic impact of demonetization.

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FAVOR OPPOSE
58.7% 41.3%

Out of all the applicants, 58.7% mentioned as they will favour the demonetisation process whereas 41.3%
wanted to oppose the demonetisation.

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YES NO MAYBE
31.7% 36.5% 31.7%

Where corruption came into the picture in India,31.7% applicants responded as Yes and equally responded
as Maybe and 36.5% applicants did not agree with it.

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YES NO MAYBE
27% 34.9% 38.1%

As per the responses received 38.1% applicants mentioned as Maybe,34.9% applicants responded as No
and only 27% applicants agreed to it.

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YES NO MAYBE
63.5% 11.1% 25.4%

Out of all the responses,63.5% applicants majorly agreed with it,25.4% said as Maybe and 11.1%
responded as No.

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YES NO
92.1% 7.9%

Out of all the responses, majorly 92.1% people support digitalized India and about 7.9% are against it.

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YES NO MAYBE
71.4% Nil 22.2%

Out of all the responses,71.4% majorly said that demonetization has affected the retail sector and 22.2%
responded as Maybe whereas 6.3% people are responding as No.

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YES NO MAYBE
39.3% 21.3% 39.3%

Out of all the responses,39.3% agreed with the decision and equally 39.3% applicants responded as maybe
whereas 21.3% applicants did not agree with the decision taken by the government of India.

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CHAPTER5:FINDINGS

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The data was collected from primary and secondary sources. For the only primary a survey was done online
and 65 responses were collected by the researcher, whereas secondary data was collected from multiple
websites and journals.

The findings of primary data were as follows:

In the View of respondents it is learnt that demonetization was not only the last resort to clean economy but
also had both positive and negative economic impact.

Respondents have agreed that in developing countries demonetization could be favoured rather than
opposing it .

As per the Indian market and Society, demonetization can be favourable to reduce the corruption in India
and stabilise the economy to a major extent.

It was seen that the common man had to suffer due to quick implementation made by the government as
there were long queues seen outside the bank for many days. However on the other hand the black was
curbed through many corrupted civilians.

It has also led to a digitalized India where we can see many retailers and wholesalers supporting digital
money transfer and supporting the country to “go cashless”.

It was a major step taken by the government of India to curb the black money and also few more steps can
be taken in similar and different ways to end the corruption completely.

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 CHAPTER6:CONCLUSION

Through the survey and data collected it is concluded that, demonetisation is a bit serious problem. The
move by the government to demonetise the old denominations with the new ones has surprised the country.
The move was an effort to handle the threat of illegal money,corruption,terror funding and counterfeit
currency. According to the survey, people agree that demonetisation is a good effort taken by the
government of India, it would bring about a positive impact on Indian economy as it encourages the digital
modes of payment such as E-wallets and apps,online transactions. It is a move towards cashless economy.
Demonetization is beneficial for the economy in the medium to long term. The decision taken by the

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government of India was quick so some were against it.However according to the survey, majority of the
applicants responded that demonetisation hasn’t reduce corruption in India. And major strengths of Indians
believe that demonetization will help to stabilize the economy.

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 CHAPTER7: SUGGESTIONS

Demonetization was a measure step taken by the government of India to deal with black money which was
is in abundance in Indian market and society.

All ATM’s should have both withdrawal and deposit facilities, regular and biometric facility.

Educate everyone about the use of e-wallet and Debit and Credit Cards.

Camps should be organised at village levels and city levels at each and every corners.

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Give every businessman, who has current account with banks, swipe machine at the earliest possible.

Incentivize savings and private Investment.

Cut down on lending Rates.

Scrap the income tax in a decent manner.

Simplification of GST

End the raid culture

Agriculture needs global push

Roll back the customs duty on gold.

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 CHAPTER8: Bibliography

www.goodreturns.in https://www.scribd.com

http://www.researchersworld.com

https://www.herofincorp.com

https://www.quora.com

International journal of research

https://www.slideshare.net UGP

Project-Report Slideshare.net

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https://image.slidesharecdn.com

Investopedia www.pbr.co.in

Modern Diplomacy

ECONOMIC TIMES

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APPENDIX-1

Questionnaires:

1.Which other countries are the examples who had demonetization in their economy?

2.What are the theories about it?

3.What are the expected gains in future?

4.What about problems faced by people?

5.Why so much of secrecy was required?

6.What are the other areas where such reforms are needed?

7.Is it political gimmick?

8.Why opposition is opposing it?

9.What are the other measures that government should take to supplement the demonetization?

10.Did the demonetization cause inconvenience to you?

11.How do you manage the cash shortage?

12.What was the impact to your purchasing power?

13.Is there any changes related to terror funding after a crucial step of demonetization during post period?

14.Did demonetization brought any change in money supply in the Indian Economy?

15.Has demonetization affected the prices of petrol during post period as compared to pre period?

16.Did demonetization affect the value of gold in the market?

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 “People, who change after change, will survive;

People who change with change, will succeed; People

who cause the change will lead.”

“Black Money pays for suffering”.

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 CHANGE IS

HARD AT FIRST,

MESSY IN THE

MIDDLE AND

GORGEOUS AT THE END

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