CHAPTER-1

INTRODUCTION

1|Page
 CHAPTER – 1

1.1 INTRODUCTION

Demonetization is the legal tender of suspending the current currency units and
reinstating the new currency units. On 8th of November; the prime minister of India
declared 500 and 1000 rupee notes invalid as a step to combat black money and to
check the fake currencies in the country. People have been given up to dec.30, 2016 to
exchange the notes held by them. The sudden nature of the announcement and the
prolonged cash shortages in the weeks that followed created significant disruption
throughout the economy. The decision came as a surprise for the general public as
more than 80% of the currencies in circulation comprised of these two faces. The
severe cash shortages brought detrimental impact on the economy. People trying to
exchange their bank notes had to stand in lengthy queues causing many deaths due to
inconvenience and rush. Cash withdrawals from bank accounts were restricted, it
caused some inconvenience for the general public in the initial few days and weeks
but with the introduction of new currency denomination of Rs. 2000 and efforts of
RBI and the banking system, the hardships were subsided to a great extent and things
have started to look normal. However, in case of business and industry, the impact of
demonetization may linger for a little longer. Demonetization directly affects
purchases which is why it always has a strong impact in the retail performance of a
company. From the prevailing circumstances it can be induced that demonetization
may have caused a temporary slug in the performance of the companies, post
demonetization growth of Indian Economy slowed down from 9.1% to 5.7% in less
than one year. The proposal by the government involves the elimination of these
existing notes from circulation and a gradual replacement with a new set of notes. In
the short term, it is intended that the cash in circulation would be substantially
squeezed since there are limits placed on the amounts that individuals can with draw
and the unaccounted cash will now flow no more and the amount collected by means
of tax can be better utilized for the public welfare and development schemes.
However, the shadow of Demonetization now appears to be fading in reality sector.
Money laundering will eventually come to halt as the activity can easily be tracked

2|Page
and the money can be seized by the authorities. In the months to come this squeezed
may be relaxed somewhat. The Finance Minister Arun Jaitley on November 7, 2017
came out with a spirited defence of demonetisation announcement on November 8,
2016 calling it a “watershed moment for the Indian economy”. According to him the
demonetization has not only changed the agenda but also made corruption difficult.
Thus, in his opinion, it was not only a “morally and ethically correct” step but also
“politically correct”. According to a 2018 report from the Reserve Bank of India,
approximately 99.3% of the demonetised banknotes were deposited with the banking
system. The banknotes that were not deposited were only worth 10,720 crore, leading
analysts to state that the effort had failed to remove black money from the economy.
The move reduced the country's industrial production and its GDP growth rate.
Initially, the move received support from several bankers as well as from some
international commentators. The move was also criticised as poorly planned and
unfair, and was met with protests, litigation, and strikes against the government in
several places across India.

1.1.1 Definition of Demonetisation

Demonetisation is an act of cancelling the legal tender status of a currency unit in

circulation. Anticipating positive changes on the liquidity structure as whole, nations
often adopt Demonetisation policy as a measure to counterbalance the current
economic condition. Countries across the globe have used Demonetisation at some or
the other point to control situations such as inflation and to boost economy.

3|Page
1.1.2 Causes of demonetization in India

Demonetization is a step initiated by the Modi government last year in the month of
November for the establishing and ensuring a healthy economy of the country. There
are several causes for demonetization to occur some of which are listed below:

1. One of the major reasons for demonetization to happen was to eliminate large
chunks of black money possessed by some of the corrupt politicians and
bureaucrats.

2. To convert the present economy into a cashless economy so as to promote and

cultivate the concept of digitalization among the citizens of India.

3. Also, it was believed that this step would definitely flush out the fake currency
notes which still persisted in several parts of the country though it was not
completely successful but helped to a must greater extent.

4. Generally, the currencies of high value are vulnerable to be used for unfair
purposes, and hence, it becomes necessary to take such big steps to eradicate
the malfunctioning elements from society.

4|Page
1.1.3 What happened during Demonetization?

 On 8th November 2019, Government of India had announced that from that
day onwards rupees 500 and 100 rupee note will not be a legal tender.
 .The 500 and 1000 rupee note will be accepted by anyone except the
organization declared by government.
 .They can change the currency from the banks and post offices till 30 th
December 2016.

1.1.4 The need of demonetization

The common public and bankers are undoubtedly in hassles in the present scenario.
Now the question- Why was demonetization required at this point of time? Here are
certain points to clarify the need for currency demonetization:

a) To develop a good banking system

b) Blocking inflow of fake currency notes used for criminal activities including
terrorist activities.
c) Destabilizing election campaigns being done through black money.
d) Destroying hoardings of public money by few influential people.

1.1.5 Merits-Demonetization Favoured India’s Economic Growth

 Demonetization policy of the Government has been termed as the greatest

financial reform that aimed to curb the black money, corruption and
counterfeit currency notes.

 Demonetization was done to help India to become corruption-free as it will be

difficult now to keep the unaccounted cash.

 Demonetization will help the government to track the black money and the
unaccounted cash will now flow no more and the amount collected by means
of tax can be better utilized for the public welfare and development schemes.

 One of the biggest achievements of demonetization has been seen in the

drastic curb of terrorist activities as it has stopped the funding the terrorism

5|Page
 which used to get a boost due to inflow of unaccounted cash and fake currency
in large volume.

 Money laundering will eventually come to halt as the activity can easily be
tracked and the money can be seized by the authorities.

 Demonetization aimed to stop the running of parallel economy due to

circulation of fake currency as the banning of Rs.500 and Rs. 1000 notes will
eliminate their circulation.

 The Public Sector Banks which were reeling under deposit crunch and were
running short of funds have suddenly swelled with lot of money which can be
used for future finances and loans after keeping a certain amount of reserve as
per RBI guidelines.

 Demonetization has driven the country towards a cashless society. Lakhs of

the people even in remote rural areas have started resorting to use the cashless
transactions. The move has promoted banking activities. Now even the small
transactions have started going through banking channels and the small
savings have turned into a huge national asset.

 The high rising price pattern and inflationary trends which the Indian economy
was facing are taking a down turn making the living possible within low
income group reach.

1.1.6 Demerits- Blow to economic growth and inconvenience all

around
 The sudden announcement has made adverse impact on business and
economy. Instead of a growing economy India has become a standstill and no
growth economy. India is an agriculture based economy. Due to the cash
crunch, the farmers especially small and marginal who largely depend on cash
to buy seeds, fertilizers and to pay for sowing, borrowing water for irrigation
and for other related agriculture equipments remained worst affected and
could not complete the crop related activity.

6|Page
  Since small branches of the banks were also not supplied with adequate cash
within time of sowing season of the crop, farmers could not get their crop
loans disbursed. This added to the woes of the farmers leading to a weak
agricultural production the coming year.
 Demonetization has made the situation become chaotic. Tempers are running
high among the masses as there is a delay in the circulation of new currency.
 Due to the inability to pay cash to poor daily wage workers, the small
employers have stopped their business activity.
 The poor planning on the part of the government has also added to the woes of
the common people with low incomes. The Rs.2000 currency note does not
find many takers as it is difficult to get the balance back when you are buying
daily needs like vegetables, milk, bread or paying for petty expenses like bus
fare. While rs.100 currency notes were not available in sufficient number,
Rs.500 note arrived in the market very late.
 Many Economists are of the view that Rs.2000 currency note will be much
easier to hide and can be used to store black money in shorter space.

1.1.7 Demonetisation Success points

India has marched on the path of digital transactions at a much faster pace.
Key points describing success of demonetisation are:
 Rate of Inflation goes down
Prices of commonly consumed commodities like Pulses, fruits; vegetables had
gone down substantially post demonetization. Accordingly it brought down
the rate of inflation during the months that followed demonetization
 India moves to cashless economy
One of the key effects of Demonetization 2016 has been that more people
have made digital payments part of their lives moving towards a cashless
economy. The details of growth of such digital transactions since January
2016 to August 2017 reflect that NEFT transactions.
 Banks’ lending increases for small businesses

7|Page
 Banks’ finance to small business was going down in pre-demonetization
period. There was a negative growth even in short period of months. As on
November 25, 2016, negative growth was recorded in Banks’ lending to small
business. However, as on September 29, 2017 the Reserve Bank of India has
reported a positive growth in lending to small business by the Banks.
 More people use Mobile wallets than cash
Instead of using cash, more people have started using Mobile wallets for
making payments for their regular needs. Even less educated people have
learned and switched over to mobile transactions. The volume of mobile
banking transaction had gone up.

1.1.8 Demonetization history and background in India

This is not the first time when Indian currency is demonetized in India.
Demonetisation has been implemented twice in the past- 1946 and 1978.

The first currency ban-

In 1946, the currency note of Rs 1,000 and Rs 10,000 were removed from circulation.
The ban really did not have much impact, as the currency of such higher
denomination was not accessible to the common people. However, both the notes

8|Page
were reintroduced in 1954 with an additional introduction of Rs 5,000 currency. Rs
500 and Rs 1000 notes were introduced in 1934 an after four years in 1938, Rs 10,000
notes were introduced.

The second ban

That came in 1978; the then Prime Minister of India Morarji Desai announced the
currency ban taking Rs1000, Rs5000 and Rs 10,000 out of circulation. The sole aim
of the ban was to curb black money generation in the country.

1.1.9 Similarities in 1978 and 2016 ban

 -The note ban by Morarji Desai also aimed to drive away black money out of
circulation in the economy. Hence, The High Denomination Bank Notes,
Demonetisation, act was implemented.

 -Narendra Modi announced the currency ban is an address that was

broadcasted across all news channels. Similarly, Desai announced the ban over
the radio after which the banks were closed the following day.

 -Both the affairs were kept confidential.

9|Page
1.1.10 Differences in the ban

 -Unlike mode, Desai didn’t have the backing of the RBI Governor. The
Governor I.G. Patel believed that the ban was implemented simply to
immobilise the funds of the opposition party. Patel also believed that people
never store black money in the form of currency for too long.

 -It didn’t have much effect on the people and affected only the privilege few.
While the recent ban had shaken the whole country.

 Coming back to 2016, there is also that a smaller.

1.1.11 Retail traders

Retail trade encompasses the department store, bookstore, and grocery store you
stopped at, along with many others who sell new or used goods to the public for
personal or household use. That could include new and used clothing from specialty
or consignment stores and even food and beverages from the grocer. Retail differs
from wholesale trade, which focuses on selling to businesses, governments, and
institutions. Shoppers participating in retail trade. The benefits of retail trade are
numerous and varied. Consumers have greater choices and inventory to choose from
as well as pricing that is competitive. Retail trade gives consumers an opportunity to
build relationships with businesses and acquire the items they need quickly.
Disadvantages come in for small-scale retailers who struggle to compete with their
larger competitors, both in terms of product assortment and pricing.

1.1.12 The Impact of demonetization on retail traders

The Narendra Modi led Government's tactical move to demonetize the currency notes
of the value of 500 and 1000 was made with the intention of eradicating corruption
and exposing the black money holders in the country. Although the move might
signify a healthy establishment for the country in the future, one can't help but admit
the immediate impact or the consequences it has had on various sectors within the
country. The Retail Sector certainly being one of them. The government’s recent

10 | P a g e
demonetization moves has definitely impacted the retail Industry in the short term due
to lack of liquidity in the economy. As the Indian retail segment generates a lot of
cash transactions, there might be reduction in the sales over the next 1-2 quarters.

However, the impact is felt more by the small traders and the unorganised retailing
segment, rather than the organised retailers. Some sectors like jewellery and the
luxury segment have been impacted more than others and will doubtlessly take much
longer to revive. However, the use of plastic money and transactions through online
payments will continue to release the money into the retail market.

In the medium-to-long run, domestic consumption will be stable owing to India’s

strong economic base and favourable demographics. Also, as more retailers encourage
alternative/digital payment solutions, the market economy will become more
transparent and structured going forward. This move has affected the Indian retail
sector due to lack of liquidity in the economy. It has also resulted into the low footfall
in shopping malls, more use of plastic money and electronic payment. The impact is
felt more by the small traders and the unorganized retailing segment as their
transaction is in cash. But it is estimated that Indian economy can grow considerably
after curbing the counterfeit money and increase in the economic activity. This paper
analyses the impact of demonetization on the Indian retail sector both organized and
unorganized.

Demonetization has resulted in visibly reduced low footfalls in shopping malls, but
this effect is temporarily and will turn around in few weeks as more currency
circulates in the system and improves the purchasing power and appetite of the
consumers. The long-term growth story of the Indian retail sector continues to be one
of resilience and growth

1.1.13 Problems faced by retail traders during demonetization

Demonetization has hit hard the mostly cash-based retail businesses in India,
witnessing an estimated sharp plunge of 25 per cent since the government banned 500
and 1000 rupee currency notes according to traders.

11 | P a g e
The confederation of all Indian traders (CAIT) – one of the largest trade association in
India, said businesses ‘’in markets across the country has reduced to 25 per cent’’
since the government announced the surprise move on 8th of November night.

CAIT explained that Indian retail trade is worth about Rs 42 lakh crore annually.
Retail trade per day is approximately Rs 14,000 crore per day, of which about 40 per
cent trade is conducted through business-to-business venture. The rest 60 per cent is
conducted directly with consumers. It said that agriculture wholesale markets across
the country ‘’had very less business’’ because farmers couldn’t sell their production
as there is no cash due to unavailability of smaller denomination notes.

Shopkeepers and small business owners narrated their harrowing tales of cashless that
has drastically reduced their trade. They said there were fewer buyers and those who
come to purchase also carry the newly –minted Rs 2000 currency note and it is
difficult for them to give them change.

1.1.14 Challenges of demonetization

1. Immediate impact is expected to be negative all round:

a. In the short term it will be a logistical nightmare to manage the cash

replacement in banks and smooth functioning if the banking system.

b. Slowdown in consumer spending due to limited cash availability.

c. Severe liquidity issues in cash based sectors like Real Estate and jewellery.

d. GDP will decline in the next 2 quarters due to reduction in overall spending.

2. Effect over the next 4-5 months:

Those having legitimate income will deposited it in banks and apart from the initial
hassles associated with the banking system; they will have nothing to worry about.
However those having unaccounted money will have several problems as follows:

12 | P a g e
Those who choose to do nothing with the money, their notes will expire worthless.
Every note is a liability of the government (RBI), and thus notes becoming worthless
will benefit the government by extinguishing its liability.

There will be a third category who will try to launder their money, but which will
entail severe risks including penalties and prosecution. However, the money sought to
be laundered will anyway enter into circulation and remain therein.

3. Overall economic impact:

a. GDP growth is expected to be negative for around 6 months. However subsequent

2 years will see sharp hockey stick revival in growth.

b. Inflation is expected to fall sharply with fall in Real Estate prices and transecting
cost thereof.

c. Currency is expected to strengthen as inflation drops and economy gets a boost.

Lastly, the question may arise as to whether the new Rs 2000 Rupee notes will
create more black money or not. While that is always a possibility, it should be noted
that this demonetization would have created a psychological impact especially on
large scale evaders who will definitely think twice before taking such action.

13 | P a g e
1.2 REVIEW OF LITERATURE

1. Geeta Rani, (2016)1, Demonetisation is a tool of government to eliminate

the currency. It is used in very adverse situations. This paper tells about that
what the posts effects of demonetization on retailers are. This paper throws
light on how much problem faced by shopkeepers, how their business
effected and effects on most popular brands sale. This paper also tells about
consumer shifting to cashless means such as pay tm, internet banking etc. To
analyse the demonetization post effects on retailers and consumers. The
research project is analytical in nature. The research project is mainly based
on primary data. The sample size is 50 shopkeepers in a town of 1.25 lakhs
population. The questionnaire survey was conducted on selected shopkeepers
based on convenience sampling method. 80 per cent shopkeepers told that
from 9thnov. 2016 to 10. Dec. 2016 there was 20 per cent increase in their sale
due to accepting the old currency but after 10 Dec. 2016 there was 50 per cent
decreased in sale due to not availability of proper cash. The wholesaler denied
extending the credit span of time. Where as in the current study the researcher
studies the concept of Demonetization and has highlighted the impact of
demonetization on retail traders, and problem face by retail traders post
demonetization phase.

2. Purvi Mathu and Dr.Ritu Arora, (2017)2, The 8th November, 2016 is
the important date in the history of the Indian economy, when our honourable
Prime Minister Narendra Modi announced the decision to demonise the 500
rupee note and 1000 rupee note. It was surprise move that has affected the
consumption activity in the India economy. This move has affected the India
retail sector due to lack of liquidity in the economy. It has also resulted into
the low footfall in shopping malls, more use of plastic money and electronic
payment. This impact is felt more by the small traders and the unorganised
retailing segment as their transaction is in cash. But it is estimated that Indian
economy can grow considerably after curbing the counterfeit money and
increase in the economic activity. This paper analyses the impact of

14 | P a g e
 demonetization on the Indian retail sector both organised and unorganised. To
analyse the impact of demonetisation on the Indian retail sector. The study is
quantitative in nature. The secondary information is used for the analysis
purpose. Sources from the secondary data are originated from the various
sources like special investigation team report, newspaper and reserve bank of
India, RBI, and websites. In order to analyse the impact of demonetization on
the organised unorganised retail sector, the data is collecting from 150 retail
stores [organised and unorganised] across the Jaipur region. The paper also
identifies the correlation between the variable that re identified-sales and
customer buying behaviour. The demonetisation move has a major impact on
the Indian retail industry. The unorganised sector in the Indian retail industry
which has a major shareholding in the industry is affected the most by this
move. Where as in the current study the researcher studies the concept of
Demonetization and has highlighted the impact of demonetization on retail
traders, and problem face by retail traders post demonetization phase.

3. R. Venkatesh and P. Sathiya Priya, (2017)3, Demonetisation is an act

of stripping currency unit of its status as legal tender. It is also known as
withdrawing of particular form of currency from circulation. Government
pulled the old Rs 500 and Rs 1,000 notes out of circulation. While the
unprecedented action taken by the Prime Minster Narendra Modi has
impacted e-commerce and at the same times it has an impact on the
consumers and their shopping behaviour through online shopping. Thus it
becomes necessary to study the impact of demonetisation on e-commerce
industry. The main aim of the study is to understand and analyse the effect of
demonetization on consumer’s frequency of buying product and consumer
mode of payment mode through online shopping post demonetisation. Find
out the trends and behaviour changes in consumer buying products. The
research design that is used i the study is descriptive research design and
analytical research design. Descriptive research designs are those which are
concerned with describing the characteristics of a particular individual or of a
group. It gives a clear description about the different aspects of the selected

15 | P a g e
 problem of research. The researcher has adopted convenience technique for
the study. The statistical tools used in this study are sampling percentage
method and ANOVA test. Primary data has been collected from respondents
through structured questionnaire. The secondary data was collected from
journals, books, magazines and internet sources. The majority of 61 per cent
of the respondents are in the gender of male. The majority of 39 per cent of
the respondents are in the age of group of 20 to 30 years the majority of the
35 per cent of the respondents are in the educational qualification of degree.
The majority of 67 per cent of the respondents are in the marital status of
married. The majority of 40 per cent of the respondents are in the monthly
income of Rs 20,000 to Rs 40,000 of the majority of 66 per cent of the
respondents are in the ownership of lease. The majority of 30 per cent of the
respondents are in the experience of the shop of 6 to 7 years. The majority of
41 respondents are in the buying behaviour of toilets soaps of no change. The
majority of 40 respondents are in the buying behaviour of hair dye of
decrease. The majority of 52 respondents are in the buying behaviour of rice
decrease. The majority of 40 respondents are in the buying behaviour of dal
decrease. The majority of 45 respondents are in the buying behaviour of
cocking oil of no change. Where as in the current study the researcher studies
the concept of Demonetization and has highlighted the impact of
demonetization on retail traders, and problem face by retail traders post
demonetization phase.

4. Dr.Vineeth K.M. and Neena Merina, (2017)4, Entrepreneurship refers

to a process of action; an entrepreneur undertakes to establish the enterprise.
In a developing country like India, small scale entrepreneurship plays a
significant role in economic development of the economy. It has emerged as a
dynamic and vibrant sector of the economy. Small scale retailing is the most
common method of entrepreneurship widely adopted in Kerala. This retailing
consist of general stores, specialty shops, second hand goods shop, street stall
holders etc. Recently, small scale retailers faced several short term
disruptions. Among them, the problems caused by demonetization policy

16 | P a g e
 were found to be significant. Implementation was not at all satisfactory.
People who operate on small scale were hit the most because their sales faced
huge fall suddenly. But now most of the traders are using pay tm and other
digital methods. As a measure the government can promote and make
available more online facilities to small traders. To understand the impact of
demonetisation from the prospective of small scale retail enterprise. The
present study is both based on primary data and secondary data. Primary data
are collected through questionnaires which are distributed at random to 120
vendors according to convenience. Secondary data are collected from public
sources such as journals, newspapers, internet and other magazines. From the
study we can see that the decision of demonetization is widely accepted s
good but the way of its planning and implementation is not effective. It does
not satisfy the purpose for which it has been implemented. The major
problem faced by the traders are lack of sales and payment to suppliers are
least affected. Where as in the current study the researcher studies the concept
of Demonetization and has highlighted the impact of demonetization on retail
traders, and problem face by retail traders post demonetization phase.

17 | P a g e
1.3 OBJECTIVES OF THE STUDY:

Following are the objectives of the study:

1. To study the impact of demonetization on retail traders.

2. To study the problems faced by retail traders after demonetisation.

18 | P a g e
1.4 IMPORTANCE OF THE STUDY

As we all know demonetization was an important event in modern Indian history. It

had a severe effect on the people of India in various ways.

This study is important to know the impact of demonetization on the retail traders and
the change in their sales volume and revenue pre and post demonetization phase. This
study reflects the various problems faced by the retailers and provides valuable
suggestions and measures for the effective demonetization process.

This study will definitely provide an opportunity for retail players to push customers
towards adopting cashless instruments and recalibrate business models to incentivize
cashless instruments.

From this study people will get an idea about the impact of demonetisation on retail
traders and the importance of demonetisation as well. However, the future researchers
may take this study as a base to conduct further research in the related field.

19 | P a g e
1.5 RESEARCH METHODOLOGY

To know the accuracy in any research, we need a deep study regarding the subject.
Research Methodology describes how the research study was undertaken. The
Research Methodology adopted is stated below. This includes the specification of
research design, sources of data collection, sampling method, tools used.

1.5.1 Research Design:

Research design is planning strategy of conducting research. It plans as to be

observed; how it is to be observed, hoe to record observations, how to
analyse/interpret observations, and how to generalize. It is a detailed plan of how the
goals of research will be achieved.

Here in this study descriptive research design is used. The term descriptive research
refers to the type of research question, design and data analysis that will be applied to
a given topic. So to understand the level of impact that demonetization had on the
retailer’s, descriptive research is used.

1.5.2 Population of the study:

The target population are the retail traders of Itanagar, Arunachal Pradesh.

1.5.3 Sampling technique:

The researcher has used convenience sampling technique for selecting sample from
population.

1.5.4 Sample size:

A total number of 30 samples are taken for the study from the population.

1.5.5 Periodicity of the study:

The study is carried out for two months, from 15th of Sept, 2018 to 30th Oct, 2018.

20 | P a g e
1.5.6 Sources of data:

This study is based on both primary and secondary data.

a) PRIMARY DATA: These data are collected by the researcher from the
respondents through structured questionnaire which were specifically prepared
for this study, where sets of question are prepared beforehand and are being
distributed to the retailers. However, personal interview and observation
method has also been used to collect the primary data.

b) SECONDARY DATA: Secondary information is collected from internet,

books, journals, previous research paper etc. for in-depth knowledge of the
subject.

1.5.7 Statistical tool:

The collected data has been analysed with the help of percentage method and have
been depicted in a tabular format. The analysed data has been presented clearly with
the help of bar diagram and pie diagram.

1.5.8 Geographical locality:

The study was conducted in Itanagar, Arunachal Pradesh.

21 | P a g e
1.6 LIMITATION OF THE STUDY

The current study suffers from the following limitations:

1. The sample size selected for the study is not representative of the entire
population.

2. The study also suffers from time constraint because of which an in-depth study
could not be carried out.

3. Some of the respondent were not cooperative and were reluctant to share their
information.

4. The study suffers from geographic limitation as well

22 | P a g e
 CHAPTER-2

DATA ANALYSIS AND INTERPRETATION

Data Analysis:

The data after collection has to be processed and analysed in accordance with the
online laid down for the purpose of developing the research plan. This is essential for
a scientific and for ensuring that we have all the relevant data. Processing implies
editing, coding, classification and tabulation of collected data so that they become
easier to analysed.

The term analysis refers to the computations of certain measures along with searching
for patters of relationships that exists among data-groups. Thus, “in the processing of
analysis, relationships or difference supporting or conflicting with original of new
hypothesis should be subjected to statistical tests to significance to determine with
what validity data can be said to indicate any conclusions.”

Analyses of data in a general way involve a number of closely relation operations that
are performed with the purpose of summarizing the collected data and organizing
them in such a manner that they answer the research questions.

23 | P a g e
Table2.1:-Table showing the working years of the respondent in the retail sector

Parameters No. of respondent Percentage

Less than 5 years 8 26.67%
5-10 years 10 33.33%
More than 10 years 12 40%
Total 30 100
Source: Field survey

Figure2.1:-Figure showing the working years of the respondent in the retail sector

Working year
45%

40%
40%
35%

30% 33.33%

25% 27%

20% percentage

15%

10%

5%

0%
Less than 5 years 5-10 years More than 10 years

INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents, 26.67% of the respondents have been working in the retail sector
for less than 5 years, 33.33% of the respondents have been working for 5-10 years,
and the remaining 40% of the respondents have been working in the retail sector for
more than 10 years.

24 | P a g e
Table 2.2:- Table showing the annual income of retailers before demonetization

Parameters No. of respondents Percentage

Below 25,000 4 13.33%
Rs 25,000- Rs50,000 6 20%
Rs 50,000- Rs 75,000 8 26.67%
Above 75,000 12 40%
Total 30 100
Source: Field survey

Figure2.2:-Figure showing the annual income of retailers before demonetization.

Annual income

13%
40%
20% Below 25,000
rs. 25,000-Rs. 50,000
rs. 50,000- RS. 75,000
27% Above 75,000

INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents, 13.33% of the respondents annual income is below 25,000, 20% of
the respondents annul income is between Rs 25,000 to 50,000, 26.67% of the
respondents annual income is between Rs 50,000 to 75,000 and majority percentage
i.e.40 % of the respondents annual income is above Rs. 75,000.

25 | P a g e
Table2.3:- Table showing the condition of the business pre and post demonetization

Parameters No. Of respondents Percentage

Better before 11 36.67%
Better after 6 20%
No change 13 43.33%
Total 30 100
Source: Field survey

Figure2.3:- Figure showing the condition of the business pre and post demonetization

Condition of the business

37%
43% Better before
Better after
No cgange

20%

INTERPRETATION: From the above table and figure it is observed that out of 30
respondents, 36.67% of the retailers had better business before demonetization, 20%
of the retailers experienced better business after demonetization and 43.33%of the
retailers faced no change in their business pro and post demonetization.

26 | P a g e
Table 2.4:- Table showing any negative change in sales volume and revenue after
demonetization

Parameters No. of respondents Percentage

No 7 23.33%
Yes 8 26.67%
Hardly 5 16.67%
Some impact 10 33.33%
Total 30 100
Source: Field survey

Figure 2.4:- Figure showing any negative change in sales volume and revenue after
demonetization

Sales

23%
33%
No
Yes
Hardly
Some impact
27%
17%

INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents, 23.33% of the respondents faced no change in their sales volume
and revenue after demonetization, 26.67% of the respondents faced negative change
in their sales volume and revenue, 16.67% of the respondents hardly faced change in
their sales volume and revenue and 33.33% of the respondents faced some impact in
their sales volume and revenue after demonetization.

27 | P a g e
Table2.5:- Table showing the reason of decrease in the sales or revenue

Parameters No. of respondents Percentage

The 2,000 problem 10 43.47%
Difficulty in day to day 4 17.39%
purchasing
Limited cash received 7 30.43%
from bank
Others 2 8.69%
Total 23 100
Source: Field survey

Figure2.5:- Figure showing the reason of decrease in the sales or revenue

Sales
50.00%
45.00%
40.00% 43.47%
35.00%
30.00%
25.00% 30.43%
20.00%
percentage
15.00% 17.39%
10.00%
5.00% 8.69%
0.00%
The 2,000 Difficulty in day Limited cash others
problem to day received from
purchasing bank

INTERPRETATION: From the above table and figure it can be interpreted that out
of 23 respondents, 43.47% of the respondents faced decrease in sales volume and
revenue because of the 2,000 problem, 17.39% of the respondents faced decrease in
sales volume or revenue because of difficulty in day to day purchasing, 30.43% of the
respondents faced problem because of limited cash received from bank and 8.69% of
the respondents said there are other problem for the purpose of decrease in sales
volume or revenue.

28 | P a g e
Table2.6:-Table showing the improvement in Annual income after demonetization

Parameters No. Of respondents Percentage

Increased 7 23.33%
Neutral/ No change 12 40%
Decreased 11 36.67%
Total 30 100
Source: Field survey

Figure2.6:- Figure showing the improvement in Annual income after demonetization

Annual income after demonetisation

23%
37%

Increaseed
Neutral/No change
Decreased
40%

INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents, 40% of the respondents had no change in their annual income after
demonetization,36.67 % of the respondents had decrease in their income, 23.33% of
the respondents had faced increase in their annual income.

29 | P a g e
Table 2.7:- Table showing the mode of payment before demonetization

Parameters No. of respondents Percentage

Cash 17 56.66%
Cheque 2 6.67%
Online mode 6 20%
Pay tm 3 10%
Others 2 6.67%
Total 30 100
Source: Field survey

Figure2.7:-Figure showing the mode of payment before demonetization

Mode of payment
60.00%

56.66%
50.00%

40.00%

30.00%
percentage

20.00%
20.00%
10.00%
10.00%
6.67% 6.67%
0.00%
Cash Cheque Online mode Pay tm Others

INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents, 56.66% of the respondents sell their product by accepting cash
only,6.67% of the respondents accepts cheque,20% of the respondents accepts online
mode, 10% of the respondents accepts pay tm and 6.67% of the respondents accept
other method of payment before demonetization.

30 | P a g e
Table2.8:- Table showing the mode of payment after demonetization

Parameters No. of respondents Percentage

Cash 8 26.67%
Cheque 2 6.67%
Online mode 9 30%
Pay tm 7 23.33%
Others 4 13.33%
Total 30 100
Source: Field survey

Figure2.8:- Figure showing the mode of payment after demonetization

Mode of payment
35.00%

30.00%
30%
25.00% 26.67%
23.33%
20.00%
percentage
15.00%
13.33%
10.00%

5.00% 6.67%

0.00%
Cash Cheque Online mode Pay tm Others

INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents,26.67% of the respondents sell their products by accepting cash,
6.67% of the respondents accepts cheque,30% of the respondents accepts online
mode, 23.33% of the respondents accepts pay tm and 13.33% of the respondents
accept other method of payment after demonetization.

31 | P a g e
Table 2.9:-Table showing whether the respondents are having bank accounts or not

Parameters No. of respondents Percentage

Yes 30 100%
No 0 0
Total 30 100
Source: Field survey

Figure2.9:- Figure showing whether the respondents are having bank accounts or not

Bank account
0%

Yes
No

100%

INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents, 100% of the respondents have bank a bank account.

32 | P a g e
Table2.10:- Table showing the use of digital banking services by the respondents for
the business

Parameters No. of respondents Percentage

Yes 13 43.33%
No 17 56.67%
Total 30 100
Source: Field survey

Figure 2.10:- Figure showing the use of digital banking services by the respondents
for the business

Digital banking

43%

57% Yes
No

INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents, 43.33% of the respondents use digital banking service and the
remaining 56.67% of the respondents do not use digital banking services for their
business.

33 | P a g e
Table2.11:-Table showing the various digital banking services used by the
respondents

Parameters No. of respondents Percentage

Pay tm 6 46.15%
Mobile banking 9 69.23%
Point of sale terminal 2 15.38%
Others 4 30.76%
Total 13 100
Source: Field survey

Figure2.11:-Figure showing the various digital banking services used by the

respondents

percentage
80%

70%
69.23%
60%

50%

40% 46%
percentage
30%
30.76%
20%

10% 15.38%

0%
Pay tm Mobile banking Point of sale Others
terminal

INTERPRETATION: From the above table and figure it can be interpreted that out
of 13 respondents, 46.15% of the respondents use pay tm, 69.23% of the respondents
use mobile banking, 15.38% of the respondents use point of sale terminal and 30.76%
of the respondents use other mode to sell their products.

34 | P a g e
Table 2.12:- Table showing the difficulty faced by the respondents while availing
these services

Parameters No. of respondents Percentage

Yes 11 84.61%
No 2 15.38%
Total 13 100
Source: Field survey

Figure 2.12:-Figure showing the difficulty faced by the respondents while availing
these services

Problems

15%

Yes
No

85%

INTERPRETATION: From the above table and figure it can be interpreted that t out
of 13 respondents, 84.61% of the respondents faced difficulties while availing digital
banking services and the remaining 15.38% of the respondents did not faced
difficulties in availing these services.

35 | P a g e
Table2.13:- Table showing the problem faced while availing digital banking services

Parameters No. of respondents Percentage

Difficulty to trust a completely 2 18.18%
mechanized system for carrying
out their financial transactions

Technical difficulties 3 27.27%

Connectivity problems while 5 45.45%
conducting the banking
transaction
Others 1 9.10%
Total 11 100
Source: Field survey

Figure 2.13:- Figure showing the problem faced while availing digital banking
services

Problems

Difficulty to trust a completely

9% 18% mechanized system for carrying
out their financial transactions

Technical difficulties

Connectivity problems while

46% 27% conducting the banking
transaction

Others

36 | P a g e
INTERPRETATION: From the above table and figure it can be interpreted that out
of 11 respondents, 18.18% of the respondents do not trust a completely mechanized
system for carrying out their financial transactions, 27.27% of the respondents face
technical difficulties while availing the digital banking, 45.45% of the respondents
face connectivity problems while conducting the banking transaction and the
remaining 9.10% of the respondents face other problems while availing the digital
banking services.

37 | P a g e
Table 2.14:-Table showing the problem faced by the respondents because of
demonetization

Parameters No. of respondents Percentage

Inconvenience to make 3 10%
small purchase
Inappropriate 9 30%
denomination to pay as
balance to customers
Limited cash received 13 43.33%
from bank
Decrease in sale 3 10%
Other 2 6.67%
Total 30 100
Source: Field survey

Figure 2.14:-Figure showing the problem faced by the respondents because of

demonetization

Problem

Inconvenience to make small

purchase
6.67% 10%
Inappropriate denomination to
10%
pay as balance to customers
30%
Limited cash received from bank

43.33%
Decrease in sale

Others

38 | P a g e
INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents, 10% of the respondents faced inconvenience to make small
purchase because of demonetization, 30% of the respondents faced problem due to
inappropriate denomination to pay as balance to customers, 43.33% of the
respondents faced problem due to limited cash received from bank, 10% of the
respondents faced decrease in sale and remaining 6.67% of the respondents faced
other problems because of demonetization

39 | P a g e
Table2.15:- Table showing the affect of cash crunch from the respondent’s point of
view

Parameters No. of respondents Percentage

Difficulty in day to day 10 33.33%
purchasing
Fall in sales and earning 6 20%
Difficulty in paying off 12 40%
the vendors
Others 2 6.67%
Total 30 100
Source: Field survey

Figure 2.15:- Figure showing the affect of cash crunch from the respondent’s point of
view

Response
45.00%
40.00%
35.00% 40%

30.00% 33.33%
25.00%
20.00%
15.00% 20%
percentage
10.00%
5.00%
6.67%
0.00%
Difficulty in day Fall in sales and Difficulty in Others
to day earning paying off the
purchasing vendors

INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents, 33.33% of the respondents faced difficulty in day to day
purchasing due to cash crunch, 20% of the respondents faced fall in their sales and
earnings, 40% of the respondents faced difficulty in paying off the vendors and the
remaining 6.67% of the respondents faced other problems.

40 | P a g e
Table 2.16:-Table showing the affect of demonetization in day to day living standard

Parameters No. Of respondents Percentage

Yes 18 60%
No 12 40%
Total 30 100
Source: Field survey

Figure 2.16:-Figure showing the affect of demonetization in day to day living

standard

Living standard

40%
Yes
No

60%

INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents, 60% of the respondents were affected by demonetization in their
day to day living standard and 40% of the respondent said they were notaffected by
demonetization in their day to day living standard.

41 | P a g e
Table 2.17:- Table showing if the respondent’s earning is sufficient to regulate the
livelihood of the family members

Parameters No. of respondents Percentage

Sufficient 7 38.89%
Uncertain 3 16.67%
To some extend sufficient 6 33.33%
Not sufficient 2 11.11%
Total 18 100
Source: Field survey

Figure2.17:-Figure showing if the respondent’s earning is sufficient to regulate the

livelihood of the family members

percentage
45.00%
40.00%
35.00% 38.89%

30.00% 33.33%
25.00%
20.00% percentage
15.00%
16.67%
10.00%
11.11%
5.00%
0.00%
Sufficient Uncertain To some extend Not sufficient
sufficient

INTERPRETATION: From the above table and figure it can be interpreted that out
of 18 respondents, 38.89% of the respondents earn sufficient to manage and regulate
the livelihood of their family members, 16.67% of the respondents earning are
uncertain to manage and regulate the livelihood of their family members, 33.33% of
the respondents earning are sufficient to some extend and the remaining 11.11% of
the respondents earning are not sufficient to manage and regulate the livelihood of
their family members.

42 | P a g e
Table.2.18:- Table showing the respondent’s recovery from demonetization problem

Parameters No. of respondents Percentage

Yes 23 76.67%
No 7 23.33%
Not capable 0 0
Total 30 100
Source: Field survey

Figure2.18:- Figure showing the respondent’s recovery from demonetization problem

Time

23%

Yes
No

77%

INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents, 76.67% of the respondents recovered from demonetization and
23.33% of the respondents are still to recover.

43 | P a g e
Table2.19:-Table showing the time taken by the respondents to recover

Parameters No. of respondents Percentage of respondents

Less than 2 months 5 21.73%
2 months- 6 months 9 39.13%
6 months- 1 year 6 26.08%
More than 1 year 3 13.04%
Total 23 100
Source: Field survey

Figure2.19:-Figure showing the time taken by the respondents to recover

Recovery
45%
40%
35% 39.13%

30%
25%
26%
20% percentage
22%
15%
10% 13.04%
5%
0%
Less than 2 2 months-6 6 months- 1 year More than 1 year
months months

INTERPRETATION: From the above table and figure it can be interpreted that out
of 23 respondents, 21.73 % of the respondents took less than 2 months to recover
from problem faced due to demonetization, 39.13% of the respondents took 2-6
months to recover, 26.08% of the respondents took 6 months-1 year to recover and
13.04% of the respondents took more than 1 year to recover.

44 | P a g e
Table2.20:- Table showing the retailer’s response to tackle demonetization

Parameters No. of respondents Percentage of respondents

Definitely not 7 23.33%
No 3 10%
May be 8 26.67%
Definitely 2 6.67%
Cannot say 10 33.33%
Total 30 100
Source: Field survey

Figure 2.20:- Figure showing the retailer’s response to tackle demonetization

Tackle demonetization

23%
33% Definitely not
No
10%
May be
7%
Definitely
27%
Cannot say

INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents,23.33% of the respondents said that they are definitely not prepared
to tackle demonetization, 10.% of the respondents said they are not prepared to tackle
demonetization, 26.67% of the respondents said they might be prepared to tackle
demonetization , 6.67% of the respondents said that they are definitely prepared to
tackle demonetization and the remaining 33.33% of the respondents said that they
cannot say if they could tackle the demonetization.

45 | P a g e
Table 2.21:- Table showing respondent’s view on demonetization as a good step for
the business

Parameters No. of respondents Percentage of respondents

Yes 7 23.33%
No 9 30%
May be 14 46.67%
Total 30 100
Source: Field survey

Figure2.21:- Figure showing respondent’s view on demonetization as a good step for

the business

Response

23%

47%
Yes
No

30% May be

INTERPRETATION: From the above table and figure it can be interpreted that out
of 30 respondents,23.33% of the respondents think demonetization is a good step for
the business, 30% of the respondents think demonetization was not a good step for the
business and the remaining 46.67% of the respondents think demonetization may be a
good step for the business.

46 | P a g e
 CHAPTER-3
FINDINGS, SUGGESTIONS AND
CONCLUSION

47 | P a g e
 3.1 FINDINGS

“DEMONETIZATION AND ITS IMPACT ON RETAIL TRADERS - A STUDY IN

ITANAGAR, ARUNACHAL PRADESH”, which was conducted with the motives of
studying the impact of demonetization on retail traders, as well as to analyse the
problems faced by the respondents, has come up with the following findings:

1. The study reveals that the majority of the respondents (i.e.40%) have been
working in retail business for more than 10 years and most of them (i.e. 40%)
earn an annual income of Rs.75000 and above.

2. It is found from the study that the majority of the respondents i.e. 43.33% have
found no change in the condition of their business pre and post demonetisation
phase. However, around 33.33% (majority) said that there is some negative
impact on sales volume and revenue after demonetisation. The reason cited by
most of the respondents (43.7%) for such decrease in sales volume and revenue is
the availability of the 2000 currencies.

3. Around 40% respondents (majority) said there is no change in annual income

after demonetization.
4. Majority of the respondents (56.66%) used cash as a mode of payment before
demonetization and 30% respondents (majority) used online mode as the mode of
payment after demonetization. Moreover, cash crunch affected the respondents
and 40% of them (majority) faced difficulty in paying off vendors. 60%
respondents said that demonetization affected their day to day living standard.
However, 38.89% (majority) of the respondents believe that their earning is
sufficient to regulate the livelihood of the family members.
5. Around 69.23% (majority) respondents are availing mobile banking services.
While, availing these services, a majority of the respondents (84.61%) are facing
difficulties and one of the major difficulties faced by them is connectivity
problems while conducting the banking transaction. However, because of
demonetization, around 43.33% of the respondents i.e. the majority also found
difficulty of limited cash received from bank.

48 | P a g e
6. Around 76.77% respondents (majority) recovered from their problems arising out
of demonetization and it took around 2 months- 6 months’ time period (39.13%)
for them to recover from such problems.

49 | P a g e
 3.2 SUGGESTIONS

This research entitled “DEMONETIZATION AND ITS IMPACT ON RETAIL

TRADERS - A STUDY IN ITANAGAR, ARUNACHAL PRADESH”. After gaining
the data and information from the respondents, the following suggestions are as
follows:

1. The banks should take up initiative for installing a proper and hassle free digital
payment system in all the retail outlets with proper training and awareness to benefit
the customers.

2. Every bank branch should provide POS/Swipe machine apart from cash counter for
deposits and withdrawals on permanent basis and also there should be immediate help
provided by the bank officials to assist the customers in case of any difficulties.

3. Every businessman, who has current account with banks, should be given swipe
machine at the earliest possible. Immediate steps to be taken by the concerned
authorities to equip banks with these machines so that it can be distributed to the
traders.

4. The Government and the concerned officials/ authorities should take necessary step
to reduce the difficulties faced by the respondents arising out of demonetisation.

50 | P a g e
CONCLUSION

Demonetization is a historic step by the government in fighting corruption, black

money and eliminating fake currency. The decision taken by the government will
definitely fetch results in the long term. The aim of demonetization is to protect the
common man. The move was also described as an effort to reduce corruption, fake
money and terror funding. Demonetization seeks to bring in a sharp, sudden but long
lasting behaviour change that encourages electronic payment.

So this study shows that in the following day’s demonetization, banks and ATMs
across the country faced severe cash shortages and has greatly affected the market.
The scarcity of cash due to demonetization led to chaos and most people holding old
currency notes faced difficulties exchanging them due to endless lines outside banks
and ATMs. But this has also instigated the shopkeepers and consumers to adopt
cashless means such as pay tm, debit card, credit card, and internet banking to buy
goods. By adopting the cashless means economy will be sound in coming time and
Indian economy will get benefits of early and hassle free transactions. Demonetization
effect will be positive in coming time for Indian economy. Indian consumers will
strive to learn new ways of cashless transactions.

What can be done is to look ahead and see the future with respect to the economic
development. Despite of certain short term troubles, demonetization is certainly going
to give a boost to the Indian economy in the long run. A step like this can result in the
cleaning up of a system for which many believed it could not be done, as earlier
attempts did not have a significant impact. Many people experienced inconvenience
because it is not just an ATM machine that is being recalibrated, but the whole
financial machinery is. But it is a small price to pay for bigger goal of flushing out the
entire black money from the country.

51 | P a g e
BIBLIOGRAPHY

Books:

 Garg, C. K. (2014). Research Methodology. New Delhi: New Age Internation

(P) Limited.

 Hazarika, P. (2012). Essential Statistics for Economic and Business Studies.

New Delhi: Akansha Publishing House.

 Jain, D. P. (2017). The Demonetisation Phenomenon. New Delhi:

Bloomsburry India.

Journals:

 Dr.K. M Vineeth and Merina Neena, ‘’Demonetization impact on small scale

entrepreneurs- A survey of retail vendors in Ernakulam district’’, Asia Pacific
Journal of Research, Volume1, Issue XLIX, ISSN (Print): 2320-5504/ISSN
(Online):2347-4793, March (2017)4.

 Mathur Puravi and Dr. Arora Ritu, ‘’Impact of demonetization on the Indian
retail industry before and after 10th December, 2016’’, International Journal
Development Research, Volume 07, Issue 07, ISSN: 2230-9926, 31st July,
(2017)2.

 Rani Geeta, ‘’Effects of demonetization on retail outlets’’, International

Journal of Applied Research, ISSN (Print): 2394-7500 and ISSN (Online):
2394-5869, (2016)1.

 Venkatesh R. and SathiyaPriya P., ‘’Impact of demonetization on retail

outlets- An Analytical study’’, International Journal of Current Research and
Modern Education, ISSN (Online):2455-5428, Volume 2, Issue 2, (2017)3.

52 | P a g e
Websites:

 http://www.mbauniverse.com/group-discussion/topic/business-
economy/demonetisation, 28thsept, 2018, 6:00pm

 https://en.wikipedia.org/wiki/2016_Indian_banknote_demonetisation,3rdoct,20
18,5;30pm

 https://www.investopedia.com/terms/d/demonetization.asp,10thoct,2018,6:15p
m

 https://timesofindia.indiatimes.com/topic/Demonetisation, 15thoct,2018,7pm

53 | P a g e
 Questionnaire

Dear Sir/Madam,

I am a student of M.Com 3rd Semester of NERIM Commerce College, under

Guwahati university conducting a survey on ‘’Demonetization and its impact on retail
traders”- A study in Itanagar, Arunachal Pradesh. Kindly extend your cooperation by
filling up the questionnaire, all the responses provided by you will be kept
confidential and only for academic purpose.

With regards,

Henna Litin

M.com 3rd Semester

NERIM Commerce College

A. Name:

B. Address:

C. Age

1. Below 30

2. 30-50

3. Above 50

D. Marital status:

a. Single

b. Married

c. Widowed

d. Divorce

54 | P a g e
 E. Type of family:

a. Joint

b. Nuclear

F. Education:

a. Illiterate

b. Metric

c. Senior secondary

d. Graduation

e. Post-graduation

f. Vocational

g. Any other

Please put a tick mark in the appropriate box:

1. For how long are you working in the retail sector?

a. Less than 5 years

b. 5-10 years

c. More than 10 years.

2. What was your annual income before demonetization?

a) Below 25,000

b) Rs. 25,000- 50,000

c) Rs. 50,000- 75,000

d) More than 75,000

55 | P a g e
 3. The condition of your business pre and post demonetization?

a) Better before

b) Better after

c) No change.

4. Did you notice any negative change in your sales volume and revenue after
demonetization?

a) No

b) Yes

c) Hardly

d) Some impact.

5. If yes, for what purpose the sales volume or revenue decreased?

a) The 2000 problem

b) Difficulty in day to day purchasing

c) Limited cash received from bank

d) Others.

6. Has your annual income improved after demonetization?

a) Increased

b) Neutral/no change

c) Decrease

56 | P a g e
 7. What mode of payment did you accept before demonetization?

a) Cash

b) Cheque

c) Online mode

d) Pay tm

e) Other

8. What mode of payment do you accept after demonetization?

a) Cash

b) Cheque

c) Online mode

d) Pay tm

e) Others

9. Do you have a bank account?

a) Yes

b) No

10. Do you use the digital banking services for your business?

a) Yes

b) No

11. If yes, what are the services that you use?

a) Pay tm

b) Mobile banking

c) Point of sale terminal

d) Others

57 | P a g e
 12. Do you face any difficulty while availing these services?

a) Yes

b) No

13. If yes, what are the problems/difficulties?

a) Difficulty to trust a completely mechanized system for carrying out their

financial transactions

b) Technical difficulties

c) Connectivity problems while conducting the banking transaction

d) Other.

14. Did you face any difficulty because of demonetization? If yes, what are the
problems?

a) Inconvenience to make small purchase

b) Inappropriate denomination to pay as balance to customers

c) Limited cash received from bank

d) Decrease in sale

e) Other

15. What were the effects of cash crunch?

f) Difficulty in day to day purchasing

g) Fall in sales and earning

h) Difficulty in paying off the vendors

i) Other

58 | P a g e
 16. Did demonetization affect your day to day living standard?

a) Yes

b) No

17. If yes, the amount you earn, is it sufficient to you to manage/regulate the
livelihood of your family members?

a) Sufficient

b) Uncertain

c) To some extend sufficient

d) Not sufficient

18. Did you recover from the demonetization problem on your business?

a) Yes

b) No

c) Not applicable.

19. If yes, how much time did you take to recover?

a) Less than 2 months

b) 2 months- 6 months

c) 6 months- 1 year

d) More than 1 year.

59 | P a g e
 20. Do you think you are not fully prepared to tackle demonetization?

a) Definitely not

b) No

c) May be

d) Definitely

e) Cannot say.

21. Do you think demonetization is a good step for your business?

a) Yes

b) No

c) Maybe.

22. Any suggestions?

…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………..

60 | P a g e