airo international research journal volume xiv, issn: 2320 ...€¦ · shikha gupta, research...

Airo International Research Journal

Volume XIV, ISSN: 2320-3714 January, 2018 UGC Approval Number 63012 Impact Factor 0.75 to 3.19

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EFFECTS OF DEMONETIZATION ON THE BUSINESS

(A CASE STUDY OF AGRA REGION)

Shikha Gupta, Research Scholar

Dayalbagh Educational Institute (Deemed University), Agra

Prof. Pramod Kumar, Head Dept. of Accountancy & Law

Dayalbagh Educational Institute (Deemed University), Agra

Declaration of Author: I hereby declare that the content of this research paper has been truly made by me including the title of the research paper/research article, and no serial sequence of any sentence has been copied through internet or any other source except references or some unavoidable essential or technical terms. In case of finding any patent or copy right content of any source or other author in my paper/article, I sha ll always be responsible for further clarification or any legal issues. For sole right content of different author or different source, which was unintentionally or intentionally used in this research paper shall immediately be removed from this journal and I shall be accountable for any further legal issues, and there will be no responsibility of Journal in any matter. If anyone has some issue related to the content of this research paper’s copied or plagiarism content he/she may contact on my above mentioned email ID.

ABSTRACT

On 8th

November, 2016 the Central Government banned ₹ 500 and ₹ 1000 notes as a legal

tender. As per RBI’s Annual Report for the Financial Year 2015-16, ₹ 500 and ₹ 1000

notes jointly form 86.4% of the total value of the currency of India. With one strict decision of

central Government, Indian economy lost 86.4% of its monetary base. So it was the time of

currency crises the whole Nation was facing a situation of unease. In the days following the

demonetisation banks had shortage of cash and ATMs across the country were out of cash.

From a labour getting wages on daily bases to big businessmen, everyone was suffering from

liquidity crises. In order to exchange old currency, people had to stand in large queues for

several hours. Demonetization took place in order to achieve some objectives, however the

nation suffered but there was some purposes behind demonetization decision these were: to

curb black money, corruption and counterfeit notes, moreover the Government wanted to

lead the society towards digitalization. In this paper the researcher has tried to know the

perception of businessmen of Agra region towards demonetization. For the purpose of getting

the views of businessmen of Agra region, a questionnaire has been designed and served to 40

businessmen of Agra out of which 20 respondents are from Petha Units and 20 respondents

are from Shoe Units (both are the leading businesses of Agra). To know the strength,

weakness, opportunities and threats of demonetization, the researcher has done a SWOT

analysis on demonetization.

Key words: Black Money, Central Government, Counterfeits, Demonetization, Petha Units,

Shoe Units, SWOT analysis.

INTRODUCTION

Black money is like a curse for any nation.

It hampers the development and growth of

any nation as it leads to lower per capita

income, lower GDP and higher poverty

and unemployment. As we know there is

high amount of black money and

counterfeit notes in India thus, Indian

Government took the challenge to make



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the economy free from black money and

counterfeits. The Government took several

steps to curb black money like establishing

Special Investing Team (SIT), opening

accounts under Pradhan Mantri Jan-

DhanYojana (PMJDY), investing foreign

accounts. Finally a drastic decision of

demonetization was taken by central

Government of India on 8th November,

2016, which exaggerated the economy of

India overnight. On 8th November, 2016

the Central Government banned ₹ 500

and ₹ 1000 notes as a legal tender. As per

RBI‟s Annual Report for the Financial

Year 2015-16, ₹ 500 and ₹ 1000 notes

jointly form 86.4% of the total value of the

currency of India. With one strict decision

of central Government, Indian economy

lost 86.4% of its monetary base. So it was

the time of currency crises the whole

Nation was facing a situation of unease. In

the days following the demonetisation

banks had shortage of cash and ATMs

across the country were out of cash. From

a labour getting wages on daily bases to

big businessman, everyone was suffering

from liquidity crises. In order to exchange

old currency, people had to stand in large

queues for several hours.Demonetization

took place in order to achieve some

objectives, however the nation suffered but

there was some purposes behind

demonetization decision these were: to

curb black money, corruption and

counterfeit notes, moreover the

Government wanted to lead the society

towards digitalization. In this paper the

researcher has tried to know the perception

of businessmen of Agra region towards

demonetization. For the purpose of getting

the views of businessmen of Agra region, a

questionnaire has been designed and

served to 40 businessmen of Agra out of

which 20 respondents are from Petha Units

and 20 respondents are from Shoe Units

(both are the leading businesses of Agra).

To know the strength, weakness,

opportunities and threats of

demonetization, the researcher has done a

SWOT analysis on demonetization.

REVIEW OF LITERATURE

Dr.Ritu Bhattacharyya, SampurnaNand

Mehta (2016), did a study on small traders

of Navi Mumbai and collected their views

through questionnaire and concluded that

demonetization has worst effected the

small traders. Jai Bansal (2017), stated in

his study that demonetization has affected

the various sectors of India and GDP of

India decreased slightly in the year 2016-

17 but it is not necessary that it will be

same inn future. He suggested

demonetization should be repeated

periodically. Ms.Asra Fatima and

AnwarulUloom (2017), stated in their

paper that demonetization taken place for

several reasons however it was not solved

completely and it will be unfair to expect

so, as it was just a first step.

Vijayaveelamegavarman, Durga and

K.Sundaramoorty (2017), suggested in

their study that in the long run, the

economy can get delight from the

lessening of the dark money, which can

bring about higher gathering, higher

business environment, less defilement

straightforwardness. Dr.D.Anbugeetha and

Mr. R.Mahaveer Jain (2016), mentioned

that next some months are going to be

disturbing and painful, but the future will

be better. Almost all the people are

showing relatively calm, positive and



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mature understanding of the after effect.

SasyakPattnaik (2016), stated that

demonetization is beneficial for Indian

economy and its growth. It may not

control the amount of black money in the

nation directly, but nonetheless, it is

beneficial for the Indian economy in the

future. Dr.S.Balamurugan and

B.K.Hemalatha (2016), concluded that

medium and large scale business are

unaffected to such ban, many small-size

commercial establishments are deeply

affected by such sudden move by the

government. K. Veerakumar (2017), stated

that up to some extent the objectives of

demonetization have been met out as Some

people are depositing currency notes in

excess of specified limits directly into

bank accounts has showed the

unaccounted income. Digitalization has

also been motivated by demonetization.

Sachin Abda (2016), suggested that

demonetization is considered with some

advantages and disadvantages in various

sectors in short run but in long run it

definitely will have positive impact in

controlling black money and fake money.

NEED/ SCOPE OF THE STUDY

As far as demonetization is concerned a

number of studies have been conducted

since demonetization is a recent event and

as far as we know, there is no published

study, which has examined the effect of

demonetization on the business of Agra

region. Hence, it is essential to conduct a

comprehensive study to examine this

issue.

OBJECTIVES OF THE STUDY

1. To examine the effect of

demonetization on the sale and

profit of selected businesses.

2. To know the perception of

businessmen of Agra region

towards demonetization.

3. To conduct a SWOT analysis on

demonetization.

HYPOTHESIS:

Ho1: There is no significant effect of the

demonetization on the profit and sales of

selected businesses.

Ho2: There is no significant difference

between the perceptions of businessmen of

Petha Units and Shoe Units of Agra region

towards demonetization.

RESEARCH METHODOLOGY

Sampling Design

Sample size: For attaining the

objective, a questionnaire has been

designed and served to 40 businessmen

of Agra region out of which 20

respondents are from Petha Units

which includes, 10 Manufacturing

Petha Units and 10 Trading Petha

Units and 20 respondents are from

Shoe Units which includes, 10

Exporting Shoe Units and 10 Domestic

Shoe Units. For analysing the effect of

demonetization on profit and loss of

selected businesses, a financial report

of last quarter (Jan-March) of the

financial year 2015-16 and 2016-17 of

all selected units have been taken into

consideration.



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Sample selection criteria:This study

has been carried out on Petha and Shoe

Units as Petha and Shoe are the most

prominent industries of Agra region.

Statistical Design

Sources of the data:The financial

information has been collected using

the secondary source from the selected

businesses. The data for knowing the

perception of businessmen of Agra

region has been collected from the

primary sources.Data for SWOT

analysis has been collected from

secondary sources i.e. newspaper,

magazines, articles etc.

Analysis of data: T-test and

percentage analysis have been used to

analyse the data.

SALE AND PROFIT ANALYSIS

The following areconsolidated sale and

profit (approx.) of the last quarter of the

financial year 2015-16 of all the selected

20 Units (10 Manufacturing Petha Units

and 10 Trading Petha Units,10 Exporting

Shoe Units and 10 Domestic Shoe Units)

have been compared with the sale and

profit (approx.) of thecorresponding period

of quarter i.e. last quarter of the financial

year 2016-17.

Petha Units Shoe Units

Jan-Mar, 2015-16 Jan-Mar, 2016-17 Jan-Mar, 2015-16 Jan-Mar, 2016-17

Sales 1.80 Crore 1.24 Crore Sales 341 Crore 330 Crore

Profit 26.1 Lakh 15.5 Lakh Profit 61.38 Crore 57.75 Crore

INTERPRETATION

On seeing the above table it can be

observed that sales of Petha Units have

been reduced by 31% and profits have

been reduced by 40.61%. On the other

hand sales of Shoe Units have been

reduced by 3.22% and profits have been

reduced by 5.91%. is can be clearly seen

that Petha Units are more effected due to

demonetization in comparison to Shoe

Units as, in the sample there are 10 Export

Shoe Units which are unaffected in respect

to demonetization. So, the null hypothesis

(Ho1) gets rejected as, there is significant

effect of the demonetization on the profit

and sales of selected businesses.

SWOT ANALYSIS

STRENGTH

Black Money: The major aim behind the

decision of demonetization was to curb

black money from the economy. As the

Finance Minister ArunJaitely said “the

goal of demonetization is to clean

transactions, (to) clean money.”Black

money operators run parallel economy

which weakened the foundation of the

nation. With one stroke Prime Minister

chocked the huge supply of black money



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in the country. But up to a limited extent

the Government was successful to curb

black money from the economy as a

limited portion of black money is being

held in cash and rest of the portion of

black money is held in other forms like

properties, investments etc. However this

was a great decision of the Government to

curb black money. Due to demonetization

major part of black money either be

deposited into banks or be destroyed.

Counterfeit Notes: The decision of

demonetization aimed at eliminating

counterfeits from the economy asa parallel

economy of fake currency has been

running in India for so long and these

counterfeit notes has been circulated

widely. The counterfeits float in the

economy, devalues the real worth of

Indian currency. This is a well-known fact

that Pakistan has been printing fake Indian

currency, which weakened the strength of

Indian economy. Demonetization has

hardly hit the counterfeits, as per the

experts these new notes of ₹ 500 and

₹2000 are very tough to replicate due to

its advance security features. So the

creators of counterfeits have no option left

with them.

Crackdown on Terror: The terror

activities majorly financed by halawa

transactions and counterfeits.

Demonetization has closed the route of

terror financing, which instantly resulted in

no stone pelting on the security force of

Kashmir as the hawala transactions and

counterfeits has been chocked up through

demonetization.

Cashless Economy: Through

demonetization decision PM Modi tried to

make the economy cashless as the cashless

economy will lead to more transparent

economy as well as the corruption will be

diminished and the money in circulation

can be traced easily. Demonetization was

closely linked with the Government‟s core

goal i.e. Digital India Mission.

Planned Strategy: Demonetization is said

to be a planned strategy as this decision

was in continuation of connecting the dots.

First step was to establish a SIT (Special

Investing Team) on black money then in

the second step i.e. Pradhan Mantri Jan-

DhanYojana (PMJDY),PM Modi tried to

make access bank accounts to every citizen

of India. The next step was inspection of

the foreign accounts and then followed by

the deadline of 30th

September, 2016 for

declaration of black money. Finally the

huge and drastic step of demonetization

was taken by PM Modi to curb the left out

black money.

Real Estate Cleaning: Real estate

industry is said to be an industry being

made on black money. The demonetization

decision targeted on curtailing the black

money from the real estate industry it will

also lead in property price reduction in

near future.

Dues Cleared by Defaulters: At the time

of demonetization defaulters cleared their

dues of various bills like electricity,

telephone etc. and taxes like income tax,

house tax, water tax etc. Even some people

paid advance income tax as per Times of

India data shows growth of 41.79% in

advance tax collection of personal Income

Tax over year ago period i.e. 2015-16.



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WEAKNESS

Consumption Affected: Due to

demonetization the rate of consumption

got down immediately, as the consumption

decreased the whole business cycle got

affected temporarily.

Slumped the Growth Momentum: As

the consumption adversely affected it lead

to decrementin production, income,

investment thus the overall growth

momentum got affected.

Liquidity Crises: Most of the people use

cash for their daily needs and at the time of

demonetization people did not have

currency with them. The businesses of

India also suffered from liquidity problem.

But this crisis was for a short period of

time. Now there is sufficient flow of

currency in the market.

Welfare Loss of Labour Class: A huge

number of people are working on daily

wages basis.Due to demonetization

business suffered from liquidity problem

thus they were not in position to pay the

labour on daily basis. So it was a welfare

loss of labour class people.

Shortage of Currency: It was the time

when ATMs were out of cash even banks

did not have sufficient cash as the

Government was not able to print new

currency as per the need of the public. At

that time after standing in a long queue for

long hours it was not necessary that all the

people will get new currency in exchange.

GDP Affected:After demonetization

whole economy slumped down for a short

period of time as a result the GDP of India

also declined. As per Hindustan times in

the fourth quarter of 2016-17 GDP growth

slowed to 6.1% from 7% in the preceding

quarter.

Small Businesses Suffered: The small

businesses which are working only on cash

suffered the most due to demonetization.

Misuse of Jan-DhanYojana Accounts:

Through Pradhan Mantri Jan-DhanYojana

(PMJDY), PM Modi tried to make access

bank accounts to every citizen of India but

at the time of demonetization some smart

people used the Jan-DhanYojana Accounts

of poor and innocent people to deposit

their black money.

OPPORTUNITY

Decline in Open Crimes: When the

society will go digital then the amount of

open crimes will be lessen as cash

facilitates crimes and digitalisation makes

the transactions more transparent. When

people will have limited cash in hand there

will be less number of crimes.

Cash Less Society: Demonetization

motivated cash less transactions which is a

huge step towards digitalisation and this is

leading towards the dream of digital India.

Future GDP growth: In spite of short

term adverse effects of demonetization, it

will lead to economic growth of India so in

upcoming years the rate of GDP will rise.

Financial Inclusion: With the help of

Pradhan Mantri Jan-DhanYojana, PM

Modi tried to make access bank accounts

to every citizen of India and when

demonetization took place mostly people



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had their accounts in banks so it became

easy to deposit money into accounts. There

is a great possibility that these people will

use their accounts in future also and will

contribute in the development of the

society as well.

More Transparency: As the societyis

going towards digitalisation, it will make

the economy more transparent. The

Government will be able to detect every

kind of fraud and crime.Recently Finance

Minister ArunJaitely announced to link

Aadhar with securities transactions.

Attract Foreign Investment: When

economy of India will become more

transparent and credible then it will attract

more foreign investments, which will

definitely help in the development of the

nation.

Decrease in Property Price: It is

expectedthat the property prices will jump

down as we all know that most of the

black money is being invested in the real

state and after demonetization people

won‟t be able to invest their unaccounted

income into real state so the developers

supposed to reduce the property prices.

Increment in the number of ITR Filed:

Afterdemonetization it is expected that

there will a jump in the number of ITR

filed which can be seen also as per Times

of India and Economic Times ITR filed by

individuals for 2016-17 grow 25.3% with

over 2.79 crore returns till 5th

August,

2017. This shows an increase of 24.7% as

compared to the growth rate of 9.9% in the

previous year. As per CBDT “The

substantial number of new taxpayers have

been brought into tax net subsequent to

demonetization.”

Eye of CBDT on Tax Evaders: As per

Times of India the CBDT cracked down

on evaders as part of „Operation Clean

Money‟ after November 2016. It identified

18 lakh people who made bank deposits of

old ₹ 500 and ₹ 1000 notes after the

November 8 demonetization

announcement in amounts that didn‟t

match with their income profiles.

Lower Interest Rates for Loans: After

demonetization it is expected that the

interest rates for proving loans will be

reduced as banks have more liquidity due

to high deposits by people so, it will be a

good opportunity for the people who are

seeking for loans.

THREATS

Arrival of Counterfeits Again: In spite of

advance technology used in the new

currency i.e.₹ 2000 and ₹ 500 notes,

there is a threat that maker of counterfeits

may crack this technology again.

Uneducated People: About 25% of

people of India are uneducatedso great

efforts are supposed to be enforced on

these people to make them familiar with

the digital economy.

Nature of Resisting Change: The people

of India have nature of resisting change,

wherever new technology or upgraded

technology comes people take time to cope

up with it or they do not upgrade with that

technology so, there is a great threat that

people of India will not go for

digitalization.



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Black Money in other Form: Along with

cash black money can be kept in other

forms also i.e. real state, gold etc. so there

is a big threat that instead of having black

money in cash people will find some other

way to keep it.

Cyber Threats:However digitalisation is

a sign of development of the nation but, it

brings a threat of cybercrime with it. So

high cyber security need to be maintained

to avoid cybercrimes.

ANALYSIS OF QUESTIONNAIRE

The responses have been collected from 40

respondents which contains 20 Petha Units

of Agra which includes, 10

manufacturingPetha Unit and 10 trading

Petha Unit and 20 Shoe Units of Agra

which includes, 10 Exporting Shoe Units

and 10 Domestic Shoe Units. The analysis

of questionnaire is as follows:

All the respondents are male. 22.5% of the

respondents lies under the age 30-40 years,

32.5% of the respondents lies under the

age 40-50 years and 45% of the

respondents lies under the age more than

50 years.

1. Due to demonetization the liquidity of your business suffered in last six months i.e.

October to March 2016.

As it can be seen in the above chart 30% of

respondents are agree and 37.5%of

respondents are strongly agree that their

business is still suffering from liquidity

crises, this category mainly includes the

Petha Units. 15% of respondents are

disagree and 17.5% of respondents are

strongly disagree, this category mainly

includes Exporting Shoe Units as their

mostly transactions are through net

banking.

2. The production of your business declined due to demonetization in last six months

i.e. October to March 2016.

37.50%

30%0%

15%

17.50% Strongly Agree

Agree

Neither Agree Nor DisagreeDisagree

Strongly Disagree



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As it can be seen in the above chart 22.5%

of respondents are strongly agree and

37.5% of respondents are agree with the

above statement as mainly Petha Units

faced decline in production in last six

months. 17.5% of respondents are disagree

and 22.5% of respondents are strongly

disagree, this category mainly includes

Exporting Shoe Units as the production of

their business did not affected much due to

demonetization.

3. There is a fall in attendance rate of labour in the factory due to demonetization.


of respondents are agree and 32.5% of

respondents are strongly agree that in their

businesses there is fall in attendance of

labour this category mainly include Petha

Units.

4. It is hard to pay labours in digital form or through cheque.


respondents are strongly agree and 27.5%

of respondents are agree that they find it

hard to pay their in digital form, this

22.50%

37.50%

0%

17.50%

22.50%

Strongly AgreeAgree


Strongly Disagree

32.50%

22.50%

0%

20%

25%

Strongly Agree

Agree


Strongly Disagree

30%

27.50%

0%

20%

22.50%

Strongly Agree

Agree

Neither Agree Nor Disagree

Disagree

Strongly Disagree



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category mainly includes Petha Units as

their mostly labours are on daily wages

basis and they pay their labours in cash.

5. There is decline in the number of customer in the market due to demonetization.

The decline in the number of customers is

mainly because the customers have lack of

liquidity. 25% of respondents are strongly

disagree and 17.5% of respondents showed

their disagreement, this category mainly

include Export Shoe Units as they export

their product to international markets and

in international markets there is no

liquidity crises due to demonetization in

India so, the sale was unaffected.

6. There is decline in the turnover of the business in last six months i.e. October to

March 2016.


of respondents are agree and 40% of

respondents are strongly agree that in last

six months they face decline in the

turnover as production and number of

customer both reduced which resulted in

decline in turnover.

7. Demonetization successfully curbed black money from the economy.

42.50%

15%

0%

17.50%

25%

Strongly Agree

Agree


Strongly Disagree

40%

17.50%

0%

25%

17.50%

Strongly Agree

Agree


Strongly Disagree

32.50%

22.50%

0%

20%

25%

Strongly Agree

Agree


Strongly Disagree



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32.5% of respondents are strongly agree

and 22.5% of respondents are agree that

the Government successfully curbed black

money with help of demonetization where

as 45% of respondents showed their

disagreement for the same. The owner of

PanchhiPetha Store said in the interview

that the clever and smart people did not

showed their black money they settled

their black money here and there.

8. Demonetization effectively made the society cashless.


respondents are strongly disagree and 25%

of respondents are disagree that

demonetization did on made the society

cashless effectively.However the society

has started moving towards cashless

society but still huge efforts are need to be

made to be a complete cashless society.

9. Due to demonetization tax evasion is eliminated or reduced.


respondents are strongly agree and 27.5%

of respondents are agree that due to

demonetization tax evasion is reduced, this

can been seen asITR filed by individuals

for 2016-17 grow 25.3%.

10. Due to demonetization your business, started doing cash less transactions including

payment to labours.

17.50%

22.50%

0%25%

35%

Strongly Agree

Agree


Strongly Disagree

60%

27.50%

0%

5% 7.50% Strongly Agree

Agree


Disagree

Strongly Disagree



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respondents are disagree and 10% of

respondents are strongly disagree that they

did not started doing cash less transactions

due to demonetization as owner of

PanchhiPetha saidin the interview that just

after demonetization they started doing

cashless transactions like they kept Paytm

machine and Swap machine but for a very

short period customer paid through these

machines but later on they came on cash

payments. However these Petha Units have

started making payments in digital form.

Some of the Shoe Units are already

indulge in cashless transaction and some of

the Units have started cashless

transactions.

11. Demonetization brought transparency in the businesses.


respondents are agree and 67.5% of

respondents are strongly agree that

demonetization brought transparency in

the businesses. Manager of Virola

International said in the interview that

demonetization brought transparency in

the businesses and in future more

transparency will be there in businesses.

12. The market has come over from the adverse effects of demonetization.

45%

30%

0%15%

10%

Strongly Agree

Agree


Strongly Disagree

67.50%

15%

0%7.50% 10% Strongly Agree

Agree


Strongly Disagree



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of respondents are disagree and 45% of

respondents are strongly disagree that the

market has not came over from the adverse

effects of demonetization. Owner of

PanchhiPetha store stated in the interview

that there sale has been reduced to

80%,even at the time of recently passed

two festivals i.e. RakshaBandhan and

Janmashtami there was no such sale as it

used to be.

13. Demonetization will slump the overall growth momentum for long term.

As it can be seen in the above chart

majority of respondents are disagree that

demonetization will slump the overall

growth momentum for long term but there

are some respondents who showed their

disagreement for the same. Owner of Agra

Petha Store said in the interview that

approximately 70-80 factories of petha got

closed due to demonetization.

14. Demonetization will lead to betterment of economy of India.

22.50%

20%

0%12.50%

45%

Strongly Agree

Agree


Disagree

Strongly Disagree

12.50%

7.50%

0%

27.50%52.50%

Strongly AgreeAgree


Strongly Disagree

45%

40%

0%

5%10%

Strongly Agree

Agree


Strongly Disagree



15


respondents are strongly agree and 40% of

respondents are agree that demonetization

will lead to betterment of economy of

India. Manager of Tez Shoe Company said

in the interview that this was a very right

decision of Central Government and it

should be repeated at regular intervals like

in every 4-5 years then the Government

will be able to curb the black money from

the economy more effectively.

ANALYSIS OF HYPOTHESIS

Here the samples are with the same

variance so, two tailed t-Test assuming

equal variance will be applied.

t-Test: Two-Sample Assuming

Equal Variances

Variable

1 Variable 2

Mean 3.696429 3.003571429

Variance 1.249794 1.474024725

Observations 14 14

Pooled Variance 1.361909 Hypothesized Mean

Difference 0

df 26 t Stat 1.570792

P(T<=t) one-tail 0.064161

t Critical one-tail 1.705618 P(T<=t) two-tail 0.128322

t Critical two-tail 2.055529

Fig 1: output from excel data analysis tool

FINDINGS: Since the p-value is 0.12

which is more than the level of

significance 0.12>0.05 so, the null

hypothesis (H02) will be accepted,

concluding that there is no significant

difference between the perceptions of

businessmen of Petha Units and Shoe

Units of Agra region towards

demonetization.

CONCLUSION

However demonetization brought uneasy

for people of India but, we can‟t ignore it‟s

positive impacts as in this financial year

i.e. 2016-17 ITR filed by individuals grow

25.3%, society started being cashless,

demonetization brought transparency, up

to some extent black money curbed from

the economy, counterfeit notes are

removed from society so, along with the

unease of some months demonetization

brought brighter future with it. If we see

the analysis of questionnaire it can be

observed that yes off course businessmen

of Agra region suffered and still suffering

from the adverse effects of demonetization

but they are not demotivating

demonetization and due to demonetization

they are visualising their country‟s future

more economic healthy, more transparent,

more progressive and clean from black

money and counterfeit notes. Finally we

can say that demonetization and other

revolutionary steps will lead to our country

towards peak not immediately but

definitely.



16

SUGGESTIONS

Although it is difficult to eradicate

black money completely from the

economy but this demonetization

decision could not

successfullymade the economy

black money and counterfeit notes

free, so demonetization should be

repeated periodically like in every

4-5 years, to curb the black money

and counterfeit notes from the

economy more effectively.

To motivate the society towards

cashless economy the Government

should enable easy and secure

banking.

There should be sufficient branches

and ATMs of banks, as thousands

of villages are still suffering from

lack banks so, banks should be in

the reach of every citizen of India.

It is noteworthy that we are leading

towards digitalisation, there is very

high risk of cybercrime so,

extraordinary cyber security should

be enforced by the Government.

Training programs on financial

literacy and digitalization should be

conducted at a large level to make

the people familiar with the

digitalization.

The Government should facilitate

easy access of network services so

that, the network facilities as the

basic requirement of digital

economy would be in reach of

common man.

REFERENCES

Bhattacharyya, R. and Mehta, S.

(2016). Demonetisation –Worst

Effected the Small Traders.

International Journal of Latest

Technology in Engineering,

Management & Applied Science

(IJLTEMAS), Volume V(Issue XII),

pp.34-40.

Muthulakshmi, E. (2017). Impacts of

Demonetisation on Indian Economy-

Issues & Challenges. IOSR Journal Of

Humanities And Social Science (IOSR-

JHSS), pp.34-38.

Bansal, J. (2017). Impact of

Demonetization on Indian Economy.

International Journal of Science

Technology and Management, Volume

VI(Issue I), pp.598-650.

Sudent, M. (2017). Cashless

Economy: Swot Analysis from Indian

Perspective. International Journal of

Science Technology and management,

Volume VI(Issue V), pp.180 185.

Fatima, A. (2017). Effects of

Demonetization in India Ms. SSRG

International Journal of Economics

and Management Studies (SSRG-

IJEMS), Volume IV(Issue III), pp.60-

63.

Sundaramoorty, K. (2017).

Demonetization: Impact on Small

Business. Special Issue Published in

International Journal of Trend in

Research and Development (IJTRD),

pp.27-29.



17

Anbugeetha, D. and Jain, R. (2017).

Demonetisation: A Swot Analysis.

TEJAS Thiagarajar College Journal,

Volume1(2), pp.28-34.

Balamurugan, S. and Hemalatha, B.

(2017). Impacts on Demonetization:

Organized and Unorganized Sector.

IOSR Journal Of Humanities And

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11.

Kaur, S. (2017). Demonetization and

Its Impacts in India. International

Journal of Research, Volume 3(Issue

17), pp.1150-1154.

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