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A STUDY OF POST-DEMONETIZATION IMPACT OF LIMITED-CASH RETAILING IN UTTARAKHAND, INDIA
Corresponding Author(s) : Vinay Kandpal
Humanities & Social Sciences Reviews,
Vol. 7 No. 5 (2019): September
Abstract
Purpose of Study: The paper aims to assess the new face of retailing after demonetization with specific focus to the role of financial intermediaries and it also focuses on Long term solutions to drive the digital cash enabled retailing in India.
Methodology: This study used a questionnaire for data collection among 250 retailers in Uttarakhand, India. The questionnaire was later on analyzed using SPSS. Qualitative data was gathered from the interview with the officials from 100 financial intermediaries from banks.
Findings: The Indian retail market has been fostered by the cash dealings. The step of demonetization caught the black marketers, retailers and common people by surprise. The move was supported by the majority of people despite facing difficulties. After the demonetization, people started using the adoption of different forms of digital payment options. The trade in the market was affected and the retail sales witnessed a severe dip. The market is recovering but the actual recovery will depend on devising the substitute for the cash payments at all levels of retailers.
Social implications: Financial inclusion is important for inclusive growth and bank to have a crucial role to play in financial literacy campaigns and should ensure that those deprived sections that come to exchange their old notes are properly taken care of. Banks could make unbanked people aware about the financial instruments available with banks and the importance of saving and putting their money in these instruments. This step would further help the economy move from unorganized to organized sector.
The originality of Study: This study is original and first of its kind conducted in Uttarakhand, India.
Keywords
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- Abda, S. (2017), Paper on Impact of Demonetization 2016 on Indian Economy, International Education & Research Journal [IERJ], 3 (5), 580-581.
- Alvares, Cliford, (2009) “The problem regarding fake currency in India.†Business Today; 3/8/2009, Vol. 18 Issue 5, p24-24.
- Annamalai, S. and Iiakkuvan R. Muthu. (2008), Retail Transaction: Future Bright for Plastic Money, Facts of You, May, pp. 22-28.
- Ashworth, David (Nov. 2016), Reasons behind Demonetization, www.marketrealist.com
- Betz, F. Anderson, T. and Puthanpura, A. (2017) Modeling Currency Flow in an Economy: The Case of India’s Demonetization in 2016. Theoretical Economics Letters, 7, 1001-1014. https://doi.org/10.4236/tel.2017.74068 DOI: https://doi.org/10.4236/tel.2017.74068
- Chelladurai, M. & Sornaganesh, V. (2016). Demonetisation of Indian Currency and Its Impact on Business Environment. International Journal of Informative & Futuristic Research, 4 (3), 5654-5662.
- Das Ashish, Agarwal Rakhi (2010), ‘Cashless Payment System in India—A Roadmap’, Technical Report, IIT Bombay, Retrieved from http://dspace.library.iitb.ac.in/jspui/handle/10054/1732 (August 2011).
- Das, Samantak, (Jan. 2017), Impact of Demonetization on Real estate, Chief Economist and National director, Knight Frank, www.livemint.com
- Geeta Rani, Effects of Demonetization on retail outlets, International Journal of Applied Research, 2016, 2(12), pp. 400-401.
- Goel, Sandeep (2018). The big bath of demonetization in India: strike on black money for corporate governance. Journal of Money Laundering Control, (4), 594. https://doi.org/10.1108/JMLC-11-2017-0063 DOI: https://doi.org/10.1108/JMLC-11-2017-0063
- Gulati, Singh, Gurbir, (Jan. 2017) Impact of Demonetization on Textile industry, www.indiaretailing.com
- Heng, How, Koon, senior FX investment strategist at Credit Suisse, www.bloomberg.com
- Hindocha, M., & Pandya, J. K. (2019). The Impact of Demonetization on Electronic Fund Transfers. IUP Journal of Bank Management, 18(2), 7–18. Retrieved from http://search.ebscohost.com/login.aspx?dire ct=true&db=bsu&AN =136927745&site=eds-live
- Hindocha, Mamta and Pandya, Jayesh (May, 2019), The Impact of Demonetization on Electronic Fund Transfers, The IUP Journal of Bank Management,
- Jagannathan, S., Packirisamy, P., & Joseph, J. (2018). Worlds of demonetisation and delegitimising the grief of the marginal. Journal of Marketing Management, 34(11/12), 965–988. https://doi.org/10.1080/0267257X.2018.1494619 DOI: https://doi.org/10.1080/0267257X.2018.1494619
- Jain, P. M. (2006). E-payments and E- Banking. Indian Banker, March. pp.108-113.
- Jaiswal, S. A. & Jagtap, K. N. (2017). A Risk of Demonetisation and its Impact on Various Sectors. International Education & Research Journal [IERJ], 3 (5), 511-513.
- Kapoor, Mahimam, (2016), Impact of Demonetization on Banking Sector, www.bloombergquint.com
- Kaur, Manpreet. (2017). “Demonetization: Impact on Cashless Payment Systemâ€. International Journal of Science, Technology and Management, 6 (1), pp. 144 – 149.
- Key Economic Indicators, Office of the Economic Advisor, www.indiaspend.com [7] Crisil, 2016, A Global S&P Company, www.indiaspend.com
- Mali, V. (2016). Demonetization: A step towards modified India. International Journal of Commerce and Management Research, 2(12), 35–36.
- Malik, Anghshu, (Jan. 2017), Impact of Demonetization on FMCG Products, Chief Operating Officer at Adani Wilmar Ltd., www.livemint.com
- Negi, A., and Pant, R. (2017). Demonetization: A Harrowing Nightmare or a Dawn of a New Era. Journal of Exclusive Management Science, 6(6), pp -1-13
- Newspapers: The Economics Time, August –September, 2012, The Business Line, July- September, 2012
- Partap Singh. 2010. Impact of Financial crisis on Indian Economy “Southern Economist†Vol. 49, no. 2. May.15, 2010; (ISSN: 0038-4046)
- Partap Singh. 2013. Depreciation of Rupee in Indian Economy: An Analysis, “International Journal of Innovations in Engineering and Technology (IJIET)â€, Vol. 2 Issue 4 August 2013 332, (ISSN: 2319 – 1058)
- Partap Singh. 2013. Gold Prices in India: Study of Trends and Patterns, “International Journal of Innovations in Engineering and Technology (IJIET)â€, Vol. 2 Issue 4 August 2013 332, (ISSN: 2319 – 1058)
- Pradeep, S. (2017). Demonetisation in India & its Effect on Growth. International Journal of Public Finance, Law & Taxation, 2 (1), 31-42.
- Preethi, S., & Sangeetha, V. M. (2017). Impact of Demonetization on Indian Economy. International Journal of Research in Economics and Social Sciences (IJRESS), 7(3), 20-28.
- R. Bhardwaj and A. Bangia, "Stock Market Trend Analysis during Demonetization using Soft-Computing techniques," 2018 International Conference on Computing, Power and Communication Technologies (GUCON), Greater Noida, Uttar Pradesh, India, 2018, pp. 696-701. DOI: https://doi.org/10.1109/GUCON.2018.8674989
- https://doi.org/10.1109/GUCON.2018.8674989 DOI: https://doi.org/10.1109/GUCON.2018.8674989
- Renjhen, Pankaj (2016), “Demonetization's Impact On Indian Retail†retrieved from http://retail.economictimes.indiat imes.com/re-tales/demonetization-s-impact-on-indian-retail/1949 on 11th March 2017
- Saini, B. M. (2016). “Demonetization – Metamorphosis for cashless Indiaâ€. International Journal of Science and Research (IJSR), 5 (12), pp. 1035 – 1036.
- Samuel, Y. & Saxena, A. K. (2017). A Study on Demonetisation and its Impact on Indian Economy. International Journal of Innovative Research and Advanced Studies (IJIRAS), 4 (2), 287-290
- Sankar, B. P. B., Dash, P., & Leepsa, N. M. (2018). Is Demonetisation a Bridge for Digital Financial Inclusion? IIMS Journal of Management Science, 9(2), 93–99. Retrieved from http://search.ebscohost.com/login.aspx?dire ct=true&db=edsijc&AN=diva.iimsjms.9.2.001&site=eds-live. https://doi.org/10.5958/0976-173X.2018.00009.X DOI: https://doi.org/10.5958/0976-173X.2018.00009.X
- Singh, C. (2018). India since demonetisation. IIM Bangalore, IIMB-WP N0. 567. 01-40. Bangalore, India: Retrieved from https://www.iimb.ac.in/sites/default/files/2018-06/Demonetisation.pdf[Crossref]. https://doi.org/10.2139/ssrn.3151238 DOI: https://doi.org/10.2139/ssrn.3151238
- Sinha, Sanjeev, (Dec. 2016), Demonetization impact, New Delhi.
- Sivathanu, B. (2019), "Adoption of digital payment systems in the era of demonetization in India", Journal of Science and Technology Policy Management, Vol. 10 No. 1, pp. 143-171, https://doi.org/10.1108/JSTPM-07-2017-0033 DOI: https://doi.org/10.1108/JSTPM-07-2017-0033
- Sukanta, Sarkar (2010). “The parallel economy in India: Causes, impacts & government initiativesâ€. Economic Journal of Development Issues, Volume 11-12 no. (1-2) p.124-134. https://doi.org/10.3126/ejdi.v11i0.6111 DOI: https://doi.org/10.3126/ejdi.v11i0.6111
- Tax Research Team (2016), “Demonetization: Impact on the Economy†NIPFP Working paper series retrieved from http://www.nipfp.org.in/media/medialibrary/2016/11/WP_2016_182.pdf on 16th February 2017
References
Abda, S. (2017), Paper on Impact of Demonetization 2016 on Indian Economy, International Education & Research Journal [IERJ], 3 (5), 580-581.
Alvares, Cliford, (2009) “The problem regarding fake currency in India.†Business Today; 3/8/2009, Vol. 18 Issue 5, p24-24.
Annamalai, S. and Iiakkuvan R. Muthu. (2008), Retail Transaction: Future Bright for Plastic Money, Facts of You, May, pp. 22-28.
Ashworth, David (Nov. 2016), Reasons behind Demonetization, www.marketrealist.com
Betz, F. Anderson, T. and Puthanpura, A. (2017) Modeling Currency Flow in an Economy: The Case of India’s Demonetization in 2016. Theoretical Economics Letters, 7, 1001-1014. https://doi.org/10.4236/tel.2017.74068 DOI: https://doi.org/10.4236/tel.2017.74068
Chelladurai, M. & Sornaganesh, V. (2016). Demonetisation of Indian Currency and Its Impact on Business Environment. International Journal of Informative & Futuristic Research, 4 (3), 5654-5662.
Das Ashish, Agarwal Rakhi (2010), ‘Cashless Payment System in India—A Roadmap’, Technical Report, IIT Bombay, Retrieved from http://dspace.library.iitb.ac.in/jspui/handle/10054/1732 (August 2011).
Das, Samantak, (Jan. 2017), Impact of Demonetization on Real estate, Chief Economist and National director, Knight Frank, www.livemint.com
Geeta Rani, Effects of Demonetization on retail outlets, International Journal of Applied Research, 2016, 2(12), pp. 400-401.
Goel, Sandeep (2018). The big bath of demonetization in India: strike on black money for corporate governance. Journal of Money Laundering Control, (4), 594. https://doi.org/10.1108/JMLC-11-2017-0063 DOI: https://doi.org/10.1108/JMLC-11-2017-0063
Gulati, Singh, Gurbir, (Jan. 2017) Impact of Demonetization on Textile industry, www.indiaretailing.com
Heng, How, Koon, senior FX investment strategist at Credit Suisse, www.bloomberg.com
Hindocha, M., & Pandya, J. K. (2019). The Impact of Demonetization on Electronic Fund Transfers. IUP Journal of Bank Management, 18(2), 7–18. Retrieved from http://search.ebscohost.com/login.aspx?dire ct=true&db=bsu&AN =136927745&site=eds-live
Hindocha, Mamta and Pandya, Jayesh (May, 2019), The Impact of Demonetization on Electronic Fund Transfers, The IUP Journal of Bank Management,
Jagannathan, S., Packirisamy, P., & Joseph, J. (2018). Worlds of demonetisation and delegitimising the grief of the marginal. Journal of Marketing Management, 34(11/12), 965–988. https://doi.org/10.1080/0267257X.2018.1494619 DOI: https://doi.org/10.1080/0267257X.2018.1494619
Jain, P. M. (2006). E-payments and E- Banking. Indian Banker, March. pp.108-113.
Jaiswal, S. A. & Jagtap, K. N. (2017). A Risk of Demonetisation and its Impact on Various Sectors. International Education & Research Journal [IERJ], 3 (5), 511-513.
Kapoor, Mahimam, (2016), Impact of Demonetization on Banking Sector, www.bloombergquint.com
Kaur, Manpreet. (2017). “Demonetization: Impact on Cashless Payment Systemâ€. International Journal of Science, Technology and Management, 6 (1), pp. 144 – 149.
Key Economic Indicators, Office of the Economic Advisor, www.indiaspend.com [7] Crisil, 2016, A Global S&P Company, www.indiaspend.com
Mali, V. (2016). Demonetization: A step towards modified India. International Journal of Commerce and Management Research, 2(12), 35–36.
Malik, Anghshu, (Jan. 2017), Impact of Demonetization on FMCG Products, Chief Operating Officer at Adani Wilmar Ltd., www.livemint.com
Negi, A., and Pant, R. (2017). Demonetization: A Harrowing Nightmare or a Dawn of a New Era. Journal of Exclusive Management Science, 6(6), pp -1-13
Newspapers: The Economics Time, August –September, 2012, The Business Line, July- September, 2012
Partap Singh. 2010. Impact of Financial crisis on Indian Economy “Southern Economist†Vol. 49, no. 2. May.15, 2010; (ISSN: 0038-4046)
Partap Singh. 2013. Depreciation of Rupee in Indian Economy: An Analysis, “International Journal of Innovations in Engineering and Technology (IJIET)â€, Vol. 2 Issue 4 August 2013 332, (ISSN: 2319 – 1058)
Partap Singh. 2013. Gold Prices in India: Study of Trends and Patterns, “International Journal of Innovations in Engineering and Technology (IJIET)â€, Vol. 2 Issue 4 August 2013 332, (ISSN: 2319 – 1058)
Pradeep, S. (2017). Demonetisation in India & its Effect on Growth. International Journal of Public Finance, Law & Taxation, 2 (1), 31-42.
Preethi, S., & Sangeetha, V. M. (2017). Impact of Demonetization on Indian Economy. International Journal of Research in Economics and Social Sciences (IJRESS), 7(3), 20-28.
R. Bhardwaj and A. Bangia, "Stock Market Trend Analysis during Demonetization using Soft-Computing techniques," 2018 International Conference on Computing, Power and Communication Technologies (GUCON), Greater Noida, Uttar Pradesh, India, 2018, pp. 696-701. DOI: https://doi.org/10.1109/GUCON.2018.8674989
https://doi.org/10.1109/GUCON.2018.8674989 DOI: https://doi.org/10.1109/GUCON.2018.8674989
Renjhen, Pankaj (2016), “Demonetization's Impact On Indian Retail†retrieved from http://retail.economictimes.indiat imes.com/re-tales/demonetization-s-impact-on-indian-retail/1949 on 11th March 2017
Saini, B. M. (2016). “Demonetization – Metamorphosis for cashless Indiaâ€. International Journal of Science and Research (IJSR), 5 (12), pp. 1035 – 1036.
Samuel, Y. & Saxena, A. K. (2017). A Study on Demonetisation and its Impact on Indian Economy. International Journal of Innovative Research and Advanced Studies (IJIRAS), 4 (2), 287-290
Sankar, B. P. B., Dash, P., & Leepsa, N. M. (2018). Is Demonetisation a Bridge for Digital Financial Inclusion? IIMS Journal of Management Science, 9(2), 93–99. Retrieved from http://search.ebscohost.com/login.aspx?dire ct=true&db=edsijc&AN=diva.iimsjms.9.2.001&site=eds-live. https://doi.org/10.5958/0976-173X.2018.00009.X DOI: https://doi.org/10.5958/0976-173X.2018.00009.X
Singh, C. (2018). India since demonetisation. IIM Bangalore, IIMB-WP N0. 567. 01-40. Bangalore, India: Retrieved from https://www.iimb.ac.in/sites/default/files/2018-06/Demonetisation.pdf[Crossref]. https://doi.org/10.2139/ssrn.3151238 DOI: https://doi.org/10.2139/ssrn.3151238
Sinha, Sanjeev, (Dec. 2016), Demonetization impact, New Delhi.
Sivathanu, B. (2019), "Adoption of digital payment systems in the era of demonetization in India", Journal of Science and Technology Policy Management, Vol. 10 No. 1, pp. 143-171, https://doi.org/10.1108/JSTPM-07-2017-0033 DOI: https://doi.org/10.1108/JSTPM-07-2017-0033
Sukanta, Sarkar (2010). “The parallel economy in India: Causes, impacts & government initiativesâ€. Economic Journal of Development Issues, Volume 11-12 no. (1-2) p.124-134. https://doi.org/10.3126/ejdi.v11i0.6111 DOI: https://doi.org/10.3126/ejdi.v11i0.6111
Tax Research Team (2016), “Demonetization: Impact on the Economy†NIPFP Working paper series retrieved from http://www.nipfp.org.in/media/medialibrary/2016/11/WP_2016_182.pdf on 16th February 2017