A Study On Factors That Are Influenced To Demonetization in India (With Special Reference To Ahemadnagar District)

International Journal of Advanced in Management, Technology and Engineering Sciences ISSN NO : 2249-7455
A study on factors that are influenced to Demonetization in India

(With special reference to Ahemadnagar District)
Anand A. Kopare 1
MBA (Marketing), MBA (HR), B.com (Marketing), Assistant Professor, Department of BBA (IB),
Sanjivani Arts, Commerce & Science College, Kopargaon. Research Scholar, Savitribai Phule Pune, University, Pune.
Email:- anandkopare28@gmail.com
Shamrao P. Ghodake 2
MBA (financial Management), MBA (HR), M.com(Accountancy & Taxation), DTL, SET in Commerce.
Assistant Professor, Department of BBA (IB),Sanjivani Arts, Commerce & Science College, Kopargaon.
Email:- shamghodake@gmail.com
Abstract:-
Recently Demonetization had made greatest impact on across the India and Indian economy. In this paper researcher had made an attempt
to find out the factors influencing to demonetization in India. Sample of 34 respondents were taken from Ahemadnagar District. Sample was selected
in simple random sampling method. An objective of this study was to find out the statistical significant relationship between demographical factors
and factors influencing to Demonetization in India. This research paper highlighting what could be the factors behind Demonetization according to
Indian.
Key Words: Demonetization, Impact, Demographical Factors, Corruption, Black money, transaction.
A) INTRODUCTION
Demonetization is the process of stripping out a currency unit of its status as legal tender. It happens whenever there is a change of
national currency. The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins.
Sometimes, a country completely replaces the old currency with new currency. The opposite of demonetization is remonetization, in which a form of
payment is restored as legal tender. Demonetization also has some pros and cons when any government announced the demonetization. There are
several reasons on which government of any nation taken crucial decision as far as concern demonetization. Following would be the reasons when
any government announced the demonetizations.
B) REASONS FOR DEMONETIZATIONS

One of the main reasons for termination to happen was to eliminate massive chunks of black cash possessed by a number of the corrupt
politicians and bureaucrats.
To convert the current economy into a cashless economy thus on promotes and cultivates the thought of digitalization among the citizens of
India.
Also, it absolutely was believed that this step would positively flush out the faux currency notes that still persisted in many components of
the country tho' it absolutely was not utterly successful however helped to a requirement larger extent.
Volume 7 Issue 11 2017 168 http://ijamtes.org/

Generally, the currencies of high worth are at risk of be used for unfair functions, and hence, it becomes necessary to require such huge
steps to eradicate the amiss parts from society.
C) Review of Literature : Demonetization in India
1. 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 were reintroduced in 1954 with
an additional introduction of Rs 5,000 currency. Rs 500 and Rs 1000 notes were introduce in 1934 and after four years in 1938, Rs 10,000
notes were introduce.
2. The second:
That came in 1978; the then Prime Minister of India Morarji Desai announced the currency ban taking Rs 1000, Rs 5000 and Rs 10,000
out of circulation. The sole aim of the ban was to curb black money generation in the country.
3. 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 (Demonetization) 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.
Differences in the ban:
Unlike Modi, Desai didnt have the backing of the RBI Governor. The Governor I.G. Patel believed that the ban was
implemented simply to immobilize the funds of the opposition party. Patel also believed that people never store black money in the form of
currency for too long.
It didnt 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 a buzz that smaller denomination currency notes like Rs 50 and Rs 100 will also be replaced
by incorporating new features and design. And that reminds us of an incident dating back to early 70s, when there were rumors of
withdrawing Rs 100 note from circulation, and immediately hoards of people were seen rushing to banks to exchange their Rs 10 and Rs 20
currencies.
D) Objectives of the Study

To understand the demonetization concept and era in India.
To study the demonetizations awareness of the respondents with regards to demonetization.
To examine the demographic profile of the respondents in Ahemadnagar District.
To examine the factors that are influence to Demonetization in India

E) Research Methodology
Research Area :- Ahemadnagar District (Maharashtra, India) was the study area selected for this research.
Primary Data :- Primary data was collected through structured questionnaire.
Secondary Data :- https://www.rbi.org.in/, News paper etc.
Sample Size :- 50 questionnaire were circulated amongst the respondents in which researcher has received 34 valid responses hence
researcher frizzed sample size to 34 only. Respective respondents are from Ahemadnagar District only.
Sampling Method :- Simple random sampling method.
Data Analysis :- Data analysis done by using SPSS tools in which frequency distribution,Chi-Square Test, F test etc. techniques been used.
F) Hypothesis Statement:-
Ho -There is no significant relation between demographical factors and reasons behind the Demonetization.
H1 - There is significant relation between demographical factors and reasons behind the Demonetization.
G) Limitations of the Study:

Study is limited to the Demonetization in India only.
Study is limited to Ahemdnagar District.
Data analysis is done with help of responses given by respondents.
H) Data Analysis & Interpretation:-

Demographical profile of the respondents:-
Sr. No. Demographical factors Factor No. respondents Respondents in %

Male 25 73.5
1 Gender
Female 9 26.5
Below 20 2 5.9
2 Age 21-30 28 82.4
31-40 4 11.8
Below SSC 0 0
SSC 0 0
HSC 0 0
3 Education
Graduate 9 26.5
Post Graduate 24 70.6
Post Graduate & Above 1 2.9
Student 13 38.2
Employee in Pvt. Sector 19 55.9
4 Occupation
Business 1 2.9
Other than given options 1 2.9
Below 1 Lac 7 20.6
1 Lac to 3 Lac 11 32.4
5 Annual Income
3 Lac to 6 Lac 13 38.2
More than 6 Lac 3 8.8
(Source:- Primary Data, SPSS Output)

I) Hypothesis Testing
1) H0:- There is no significant relationship between Gender wise thinking and to Destroy Black money in India is the reasons behind
demonetization.
H1:- There is significant relationship between Gender wise thinking and to Destroy Black money in India is the reasons behind
demonetization.
Level of significance = 0.05
2 = 3.727 df = 4 P = .444
Interpretation:- Since P value (.444) is more than level of significance (0.05), the null hypothesis is accepted. Hence we can say that, gender wise
respondents never thought that, to Destroy Black money in India is the reasons behind demonetization.
2) H0:- There is no significant relationship between Gender wise thinking and to destroy corruption, illegal activities in India is the reasons
behind demonetization.
H1:- There is significant relationship between Gender wise thinking and to destroy corruption, illegal activities in India is the reasons

2 = 1.969 df = 4 P = .741
respondents never thought that, to destroy corruption, an illegal activity in India is the reasons behind demonetization.
3) H0:- There is no significant relationship between Gender wise thinking and Implementation of Electronic Payment in India is the reasons
H1:- There is no significant relationship between Gender wise thinking and Implementation of Electronic Payment in India is the reasons

2 = 4.065 df = 4 P = .397
respondents never thought that, Implementation of Electronic Payment in India is the reasons behind demonetization.
4) H0:- There is no significant relationship between Gender wise thinking and to remove all Fake Currencies in India is the reasons behind
demonetization.
H1:- There is no significant relationship between Gender wise thinking and to remove all Fake Currencies in India is the reasons behind
demonetization.


2 = 5.555 df = 4 P = .235
Interpretation:- Since P value (.235) is more than level of significance (0.05), the null hypothesis is accepted. Hence we can say that,
gender wise respondents never thought that, to remove all Fake Currencies in India is the reasons behind demonetization.
5) H0:- There is no significant relationship between Age wise thinking and to Destroy Black money in India is the reasons behind
demonetization.
H1:- There is significant relationship between Age wise thinking and to Destroy Black money in India is the reasons behind
demonetization.

2 = 4.771 df = 8 P = .782
Interpretation:- Since P value (.444) is more than level of significance (0.05), the null hypothesis is accepted. Hence we can say that, Age wise
6) H0:- There is no significant relationship between Age wise thinking and to destroy corruption, illegal activities in India is the reasons behind
demonetization.
H1:- There is significant relationship between Age wise thinking and to destroy corruption, illegal activities in India is the reasons behind
demonetization.

2 = 8.493 df = 8 P = .387
Interpretation:- Since P value (.8.493) is more than level of significance (0.05), the null hypothesis is accepted. Hence we can say that, Age wise
7) H0:- There is no significant relationship between Age wise thinking and Implementation of Electronic Payment in India is the reasons behind
demonetization.
H1:- There is no significant relationship between Age wise thinking and Implementation of Electronic Payment in India is the reasons

2 = 12.919 df = 8 P = .115
Interpretation:- Since P value (.115) is more than level of significance (0.05), the null hypothesis is accepted. Hence we can say that, Age wise
8) H0:- There is no significant relationship between Age wise thinking and to remove all Fake Currencies in India is the reasons behind
demonetization.
H1:- There is no significant relationship between Age wise thinking and to remove all Fake Currencies in India is the reasons behind
demonetization.


2 = 17.442 df = 8 P = .026
Interpretation:- Since P value (.026) is less than level of significance (0.05), the null hypothesis is rejected. Hence we can say that, Age
wise respondents thought that, to remove all Fake Currencies in India is the reasons behind demonetization.
9) H0:- There is no significant relationship between Gender wise thinking and to Destroy Black money in India is the reasons behind
demonetization.
H1:- There is significant relationship between Gender wise thinking and to Destroy Black money in India is the reasons behind
demonetization.
2 = 3.727 df = 8 P = .444
10) H0:- There is no significant relationship between Education wise thinking and to Destroy Black money in India is the reasons behind
demonetization.
H1:- There is significant relationship between Education wise thinking and to Destroy Black money in India is the reasons behind
demonetization.
2 = 4.029 df = 8 P = .855
Interpretation:- Since P value (.855) is more than level of significance (0.05), the null hypothesis is accepted. Hence we can say that, education
wise respondents never thought that, to Destroy Black money in India is the reasons behind demonetization.
11) H0:- There is no significant relationship between Education wise thinking and to destroy corruption, illegal activities in India is the reasons
H1:- There is significant relationship between Education wise thinking and to destroy corruption, illegal activities in India is the reasons

2 = 15.253 df = 8 P = .054
Interpretation:- Since P value (.054) is more than level of significance (0.05), the null hypothesis is accepted. Hence we can say that, Education
wise respondents never thought that, to destroy corruption, an illegal activity in India is the reasons behind demonetization.
12) H0:- There is no significant relationship between Education wise thinking and Implementation of Electronic Payment in India is the reasons
H1:- There is no significant relationship between Education wise thinking and Implementation of Electronic Payment in India is the
reasons behind demonetization.


2 = 19.125 df = 8 P = .014
Interpretation:- Since P value (.114) is less than level of significance (0.05), the null hypothesis is rejected. Hence we can say that, Education wise
respondents thought that, Implementation of Electronic Payment in India is the reasons behind demonetization.
13) H0:- There is no significant relationship between Education wise thinking and to remove all Fake Currencies in India is the reasons behind
demonetization.
H1:- There is no significant relationship between Education wise thinking and to remove all Fake Currencies in India is the reasons behind
demonetization.

2 = 8.488 df = 8 P = .387
Education wise respondents never thought that, to remove all Fake Currencies in India is the reasons behind demonetization.
14) H0:- There is no significant relationship between Occupation wise thinking and to Destroy Black money in India is the reasons behind
demonetization.
H1:- There is significant relationship between Occupation wise thinking and to Destroy Black money in India is the reasons behind
demonetization.
2 = 18.880 df = 12 P = .091
Interpretation:- Since P value (.091) is more than level of significance (0.05), the null hypothesis is accepted. Hence we can say that, occupation
wise respondents never thought that, to Destroy Black money in India is the reasons behind demonetization.
15) H0:- There is no significant relationship between Occupation wise thinking and to destroy corruption, illegal activities in India is the reasons
H1:- There is significant relationship between Occupation wise thinking and to destroy corruption, illegal activities in India is the reasons

2 = 10.930 df = 12 P = .535
Interpretation:- Since P value (.535) is more than level of significance (0.05), the null hypothesis is accepted. Hence we can say that, Occupation
wise respondents never thought that, to destroy corruption, an illegal activity in India is the reasons behind demonetization.
16) H0:- There is no significant relationship between Occupation wise thinking and Implementation of Electronic Payment in India is the reasons
H1:- There is no significant relationship between Occupation wise thinking and Implementation of Electronic Payment in India is the
reasons behind demonetization.


2 = 13.050 df = 12 P = .365
Interpretation:- Since P value (.365) is more than level of significance (0.05), the null hypothesis is accepted. Hence we can say that, Occupation
wise respondents never thought that, Implementation of Electronic Payment in India is the reasons behind demonetization.
17) H0:- There is no significant relationship between Occupation wise thinking and to remove all Fake Currencies in India is the reasons behind
demonetization.
H1:- There is no significant relationship between Occupation wise thinking and to remove all Fake Currencies in India is the reasons

2 = 20.425 df = 12 P = .059
Occupation wise respondents never thought that, to remove all Fake Currencies in India is the reasons behind demonetization.
18) H0:- There is no significant relationship between Annual Income wise thinking and to Destroy Black money in India is the reasons behind
demonetization.
H1:- There is significant relationship between Annual Income wise thinking and to Destroy Black money in India is the reasons behind
demonetization.
2 = 28.094 df = 12 P = .005
Interpretation:- Since P value (.005) is less than level of significance (0.05), the null hypothesis is rejected. Hence we can say that, Income wise
respondents thought that, to Destroy Black money in India is the reasons behind demonetization.
19) H0:- There is no significant relationship between Income wise thinking and to destroy corruption, illegal activities in India is the reasons
H1:- There is significant relationship between Income wise thinking and to destroy corruption, illegal activities in India is the reasons

2 = 17.018 df = 12 P = .149
Interpretation:- Since P value (.149) is more than level of significance (0.05), the null hypothesis is accepted. Hence we can say that, Income wise
20) H0:- There is no significant relationship between Income wise thinking and Implementation of Electronic Payment in India is the reasons
H1:- There is no significant relationship between Income wise thinking and Implementation of Electronic Payment in India is the reasons


2 = 20.148 df = 12 P = .064
Interpretation:- Since P value (.064) is more than level of significance (0.05), the null hypothesis is accepted. Hence we can say that, Income wise
21) H0:- There is no significant relationship between Income wise thinking and to remove all Fake Currencies in India is the reasons behind
demonetization.
H1:- There is no significant relationship between Income wise thinking and to remove all Fake Currencies in India is the reasons behind
demonetization.

2 = 11.822 df = 12 P = .460
Income wise respondents never thought that, to remove all Fake Currencies in India is the reasons behind demonetization.
J) Findings
1) 76.5% respondents were aware when demonetization take place in November 2016.
2) 67.6% respondents said that, Demonetization helps to Destroy Black money in India is the reason behind demonetization.
3) 50% respondents agree with Demonetization helps to Destroy Black money in India is the reason behind demonetization.
4) 67.6% respondents were said that, Demonetization helps to destroy corruption, illegal activities in India is the reason behind
demonetization.
5) 32.4% respondents were agree and 26.5% respondents were strongly agree with, Demonetization helps to destroy corruption, illegal
activities in India is the reason behind demonetization.
6) 50% respondents said that, Demonetization helps to destroy corruption, illegal activities in India is the reason behind demonetization.
7) 26.5% repondets were agree and 47.1% respondents were strongly agree with Demonetization helps to Demonetization helps to destroy
corruption, illegal activities in India is the reason behind
8) 70.6% respondents said that, Demonetization helps to Implementation of Electronic Payment in India is the reason behind demonetization.
9) 14.7% each respondents were strongly diagree, disagree and neutral with Demonetization helps to Implementation of Electronic Payment
in India is the reason behind demonetization.
Conclusion
After 4 decades Prime Minister of India has taken very crucial and highly confidential decision on demonetization in India and it was
disorientations to Indians. While taking this decision Government of India had kept certain objectives like corruption, destroyed illegal activity,
implementation of E payment, to remove fake currency from the Indian Market etc. the overall strategy behind the demonetization was to tress the
currency, account the currency, hold to non tax payers, to promote debit card, credit card, e banking and to move Indians towards cashless economy.

References
1) www.rbi.org.in
2) https://en.wikipedia.org/wiki/2016_Indian_banknote_demonetisation
3) Prabhat Pankaj and Sheenu Jain, The Demonetization Phenomenon
4) H. K. Dua, Demonetization in the Detail
5) Tamal Bandyopadhyay, From Lehman to Demonetization
6) http://www.mbauniverse.com/group-discussion/topic/business-%26-economy/demonetization.php
7) C. Rammanohar Reddy, Demonetisation and Black Money
8) https://blogs.timesofindia.indiatimes.com/cash-flow/demonetization-in-1946-and-1978-stories-from-the-past/

A Study On Factors That Are Influenced To Demonetization in India (With Special Reference To Ahemadnagar District)

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

A Study On Factors That Are Influenced To Demonetization in India (With Special Reference To Ahemadnagar District)

Загружено:

Авторское право:

Доступные форматы

International Journal of Advanced in Management, Technology and Engineering Sciences ISSN NO : 2249-7455

A study on factors that are influenced to Demonetization in India

B) REASONS FOR DEMONETIZATIONS

Volume 7 Issue 11 2017 168 http://ijamtes.org/

C) Review of Literature : Demonetization in India

1. The first currency ban:

3. Similarities in 1978 and 2016 ban:

Differences in the ban:

D) Objectives of the Study

Volume 7 Issue 11 2017 169 http://ijamtes.org/

G) Limitations of the Study:

H) Data Analysis & Interpretation:-

Sr. No. Demographical factors Factor No. respondents Respondents in %

Volume 7 Issue 11 2017 170 http://ijamtes.org/

Level of significance = 0.05

Level of significance = 0.05

Volume 7 Issue 11 2017 171 http://ijamtes.org/

Level of significance = 0.05

Level of significance = 0.05

Level of significance = 0.05

Level of significance = 0.05

Volume 7 Issue 11 2017 172 http://ijamtes.org/

Level of significance = 0.05

Level of significance = 0.05

Volume 7 Issue 11 2017 173 http://ijamtes.org/

Level of significance = 0.05

Level of significance = 0.05

Level of significance = 0.05

Volume 7 Issue 11 2017 174 http://ijamtes.org/

Level of significance = 0.05

Level of significance = 0.05

Level of significance = 0.05

Volume 7 Issue 11 2017 175 http://ijamtes.org/

Level of significance = 0.05

Level of significance = 0.05

Volume 7 Issue 11 2017 176 http://ijamtes.org/

Volume 7 Issue 11 2017 177 http://ijamtes.org/

Вам также может понравиться