1. WHAT IS DEMONETIZATION
Demonetization is the
withdrawal of particular
form of currency from
circulation.
It is a process by which is
a series of currency will not
be legal tender.
The series of currency will
not acceptable as a valid
currency.
3. BRIEF INTRODUCTION OF
RECENT DEMONETIZATION
On the evening of 8th November 2016, Indian prime minister
Mr. Narendra Modi announced a sudden demonetization of
₨.500 and Rs.1000 rupees notes.
Instead of RBI Governor Urjit Patel, surprisingly Prime
Minister announced the news of demonetization that these
banknotes would not be legal tender after midnight of 8th
November.
The high values will not be legal for transaction. Although the
old notes can be exchange till 31st December 2016.
4. History of Demonetization in
India and World
RBI printed the highest demonetization notes of Rs.10,000
in 1938.
After that government demonetize Rs.1,000 and higher
denomination banknotes in 1946.
Higher demonetized banknotes (Rs.1,000, Rs.5,000,
Rs.10,000,)
First time Rs.5000 banknotes in 1987 in order to restrain
over increasing banknotes, due to inflation and in 2000 again
Rs.1000 banknotes came back in circulation in order to
contain the volume of bank notes in circulation, However,
Rs.2,000 banknotes were first time introduced in Nov. 2016.
5. List of countries in the world that
had done Demonetization
CountryName Year Objective Results
Nigeria 1984 To fix, debt burdened and inflation
riddeneconomy
Economy collapsed
Soviet Union 1991 Fightagainstunearnedincome,
smugglingand corruption
The economy system of the USSR
was essentiallycrushed
Ghana 1982 To controlblack money People turnedto foreign
Myanmar 1987 To curbblack money Led politicaldisputeand died
thousandsof people
NorthKorea 2010 To lowerdown the market of black
money
Miserablyfailed
Zimbabwe 2010 Slidingout from Hyperinflation Failed
Australia 1996 To the curb black money crisisand
improve security features on the
notes
Success
Britain 1971 To bring uniformityin currency Failedin other countriesexcept
Britainfailed
Zaire 1990 A plan to withdrawobsolescent
currencyfrom the system
Failed
USA 1969 Dueto black money Success
Pakistan 2015 To get rid from black money,
counterfeitcurrency
MessedUp
Germany 1923 Due to high domestic prices Inflation
6. Scope of the study of
Demonetization
Cashless economy.
Digital Payments, Plastic Money.
To control black money.
Businessman can also take the wise decision so that he
will be able to generate more revenue and can earn the
profit in the actual market scenario.
Indian government, business and the Indian customer,
through this study government will be able to know about
the future conditions of the economy.
This study will help to the government fro policy making
to the betterment of the economy.
7. Effectiveness of demonetization
Why India demonetized only 500 and 1000 currency
notes:
RBI’s report the 500 and 1000 rupees notes approximately
86% value in the circulation. So government decides to
remove this huge amount of money from the market. And
the maximum fake currncy notes exist in the from of 500
and 1000.
Increased debit and credit card transactions:
After the advent of Demonetization there has been a multi
fold increase in Debit Cards and Credit Cards. The Banking
system has also become proactive in installing POS
Machines
8. IMPACT OF DEMONETIZATION ON
BANKING SECTOR
Demonetization is a tool to battle Inflation, Black Money, Corruption and
Crime, discourage a cash dependent economy and help trade. Its policy
of the government by banning Rs. 500 and Rs.1000 currency notes has
influenced all almost all the corner of the economy.
9. Opening of Jan Dhan Account
Post-demonetisation, 23.3 million new
accounts were opened under the Pradhan
Mantri Jan Dhan Yojana (PMJDY), bulk of
which (80 percent) were with public sector
banks.
the new Jan Dhan accounts opened, 53.6
percent were in urban areas and 46.4 percent
in rural areas.
The total balance in PMJDY deposit
accounts peaked at Rs. 746 billion as on
December 7, 2016 from Rs. 456 billion as on
November 9, 2016 - an increase of 63.6
percent.
the use of these accounts to convert black
money into white, the Government issued a
warning against the misuse of such accounts.
10. E-banking
Online banking is also know
as internet banking (or) virtual
banking.
Is an electronic payment any
uses with use of personal
computer and a browser can get
connect to his banks website to
perform any of the virtual
banking function.
the term electronic banking
covers both computer an
mobile.
11. How demonetization effect on
electronic payment
The Indian government wants to go cashless transaction. Due to that online
transaction where done through use of debit and credit cards. They are many
options to cashless transaction available in India they are.
1. Plastic money
2. Aadhaar card
3. E-wallet
4. UPI (unified payment interface)
12. Features of E-banking
Easy electronic fund transfer facility.
E-Banking brings door step service.
It can be to view balance of account and statements.
It’s a better efficiency in CRM( Customer Relationship
Management)
Receive e-Bills and reminders through BillPay.
13. Benefits of using E-banking
Benefits to customer
E banking helps as a less waiting time.
It easy and convenient to use.
It provides 24*7 service.
E banking save time.
It unable t help make transaction at any time of the day and as many
times as you want.
Benefits to bank
It improve customer relation with banks.
It helps to cost effective to increase profitability.
E-banking helps as a reduction of burden to branch banking.
14. The impact of demonetization on
the common man
Low-income people have been impacted as their payments are
delayed.
-Some people may commit suicide.
-Cashiers and bankers will get due respect in society.
-Marriages to become cheap. Death of dowry.
-All medicines in white money.
-Big blow to gambling.
-Death of drug mafia and terror networks.
-People now know moral status of their peers and neighbors
better.
