1.
A Project on Market Research
“Demonetization Effect on Rural Area”
PRESENTED BY- SAYANTAN ROYCHOUDHURY

2.
Demonetization – A brief introduction
 Demonetization is the act of stripping cash notes of its status as legal tender.
 The old currency notes must be retired and replaced with a new currency unit.
 Indian Government first came up with the idea of Demonetization in 1978 by
banning of INR 1000, INR 5000, INR 10,000, the 1.7% of total notes in
circulation.(Currency worth INR 1.46 Billion)
 Later In India, on 8th November,2016, the Government announced that INR500
and INR1000 notes would be ceased as legal tender.
 The move is aimed at controlling black money, fake currency circulation and
terror financing.

3.
Some important numbers
 Notes in circulation of November 4,2016 is Rs 17,742 billion which is 13% of GDP-
13%,
87%,
Circulation of money
Percentage of circulation of money
86.50%
13.50%
Circulation of
INR500/1000
Circulation of
INR500/1000
Others
Values of 500/1000 notes in circulation
is Rs 15,347 billion

4.
Literature review – The economists tend to have varying
opinions about the move
 The great Economist, Nobel Prize winner and also Professor of Harvard
University, Dr. Amartya Sen refers demonetization as “Despotic Act”.
 The Ex Governor of RBI Mr. Raghuram Ranjan emphasized on tracking the data
and tax administration rather than stripping the currency.
 The great American Economist, Novel Prize winner, Mr. Paul Krugman believed
that demonetization won’t serve any legitimate purpose.
 Mr. Arvind Panigrahyi, the Vice Chairperson of Niti Ayog supports the step by
saying it would help the economic growth of India in long term perspective.

5.
Sectorial Impact
Divergent
Marginally
Positive Negative Neutral
Negative Negative
Divergent
according to
segmentation

6.
Sector
Financial Service
Commercial
Banks
Mutual
Funds
Pension
Funds
NBFC
Life
Insurance
Worth of Rs 72.606
trillion
Worth of Rs
14.21 trillion
Worth of Rs
1.38 trillion
Worth of Rs
1.09 trillion
Worth of Rs 4.09
trillion

7.
Non Banking Financial Company
 The vision of the firm is “To Transfer RURAL LIVES and Drive POSITIVE
change in the communities” and “To be a LEADING financial service provider in
semi urban and rural India”.
 The Brand Pillars of Mahindra Finance consists of :
Accepting No Limits
Alternative Thinking
Driving Positive Change

8.
Services
NBFC fund loans
to buy commercial
vehicles.
NBFC fund loans
to buy personal
vehicles.
NBFC has
recently
introduced the
scheme of
funding loan to
book conceptual
vehicles.

9.
Project
 The Project is to do a research on ‘Demonetization Effect on Rural area’.
 As NBFC funds the loan to buy the vehicles, so it includes the manufacturer,
dealer and banks.
 Many NBFC mainly focuses on rural areas as well , as 80% of the total revenue
is generated from rural areas.

10.
Requirement of Project
 The impact on Auto Finance company is divergent according to the segment.
 In rural segment 70- 80% transactions are done in cash so it gets highly effected.
 Resale value is likely to come down for vehicles especially for the commercial
vehicles.
 As NBFC’s overall market share is highly dependent on rural segment so it got hit
by demonetization.
 The objective of the project is to realize the effect on rural segment.

11.
Project Description
 A team of 18 people have been appointed by the company to conduct a research on
“Demonetization Effect on Rural Area” on different areas of Maharashtra.
 First we were divided into 6 groups. Each group consisted of 3 people.
 Second each 2 of 6 groups decided to visit the manufacturer, dealer and rural area.
 Third we went to our designated areas to gather information on the effect of
demonetization.
 Fourth on the basis of this information we prepared the secondary research objective.
 Fifth on the basis of secondary research objective we prepare a questionnaire.
 Sixth we sent the questionnaire to the company which was approved by the company.
 Seventh they sent 6 different groups to 6 different districts and provided the contacts
of concerned person of the respective area.
Group Location
Group 1 Kolhapur
Group 2 Solapur
Group 3 Satara
Group 4 Ahmadnagar
Group 5 Baramati
Group 6 Sangli

12.
Interviewed People

13.
Scope of Business
Anonymous.
Patel & Sons
Construction
Pvt. Ltd.
Cont-
9923293485
Loan of Rs
90 lakhs
Contract of
Rs
2,80,00,000
Purchase
of 2
Pokland
Machines

14.
Learning Outcome
Interacted with
people on a
large scale and
handled their
grievances
Worked with a
team of 18
creative
people and
applied team
dynamics for a
successful
venture
Lead a team of
18 people
always gives a
great
experiential
learning of
Team spirit,
Coordination,
and
understanding
Modus
Operandi.
Interacted with
many people,
convinced
them to take
loan and as
well as the
repayment of
EMI has been
successfully
convinced
through me
Professionalis
m has been
successfully
experienced in
terms of
maintenance of
grooming
standards,
Punctuality,
patience and
perseverance

15.
Thank You