dissertation on pre and post banking habits of common people and its impact on the demand on e banking.

1. A Dissertation on
IMPACT OF DEMONETIZATION ON BANKING HABITS WITH
SPECIAL REFERENCE TO ONLINE BANKING IN INDIA
Submitted to
Amity University Madhya Pradesh
In partial fulfillment of the requirements for the award of the degree of
Bachelor of Commerce Honors
In
FINANCE
By
SHIVANSH PATANKAR
Under the guidance of
Dr. MEGHNA GOEL
Assistant Professor
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY MADHYA PRADESH
May 2018

2. AMITY BUSINESS SCHOOL
DECLARATION
I, SHIVANSH PATANKAR student of B.COM (H) VI SEM hereby declare that the dissertation
titled “Impact of Demonetization on banking habits with special reference to online banking
in India” which is submitted by me to Amity Business School, Amity University Madhya
Pradesh, in partial fulfilment of requirement for the award of the degree of Bachelor of
Commerce in Finance and Marketing, has not been previously formed the basis for the award of
any degree, diploma or other similar title or recognition.
Gwalior (Madhya Pradesh)
Date Name and signature of Student(s)

3. AMITY SCHOOL OF BUSINESS
CERTIFICATE
It is to certify that the dissertation titled “Impact of Demonetization on banking habits with
special reference to online banking in India” which is submitted to Amity Business School,
Amity University Madhya Pradesh, in partial fulfilment of the requirement for the award of the
degree of Bachelor of Commerce is an original contribution with existing knowledge and faithful
record of work carried out by him under my guidance and supervision.
To the best of my knowledge this work has not been submitted in part or full for any Degree or
Diploma to this University or elsewhere.
Madhya Pradesh
Date (Guide)
Amity Business School
Amity University Madhya Pradesh
HOI/HOD
Amity Business School
Amity University Madhya Pradesh

4. ACKNOWLEDGEMENT
Firstly, I would like to express my sincere gratitude to my guide Dr. MEGHNA GOEL for the
continuous support for my research paper and for her patience, motivation and immense
knowledge. Her guidance helped me at all times during the research and writing of this term
paper. I could not have imagined having a better advisor and mentor for my research study.
I thank my fellow classmates for the stimulating discussions, endless debates and on many
editorial works and for all the fun we had in the last few weeks.
Finally, I sincerely thank my parents who provided me with their expertise knowledge and
advice. The result of this research paper would not have been possible without all of them.
Shivansh Patankar
B.COM (H)

5. 5
CONTENTS PAGE
NO.
Front Page i
Declaration by student ii
Certificate by supervisor iii
Acknowledgement iv
Abstract v
Chapter1. Introduction 1
1.1 Demonetization 1
1.2 Facts About Demonetization 1946, 1978 And 2016 1-2
1.3 Demonetization and Bank Operations 2-3
1.4 Results of Post Demonetization on B.o 3-13
Chapter2. Review of Literature and Definition of Problem 14-16
Chapter3. Research Methodology 17-18
Chapter4. Findings and Conclusion 19-47
References/ Bibliography
Appendix
Plagiarism report

6. 6
LIST OF FIGURES
S NO PAGE NO.
Figure 4.1 19
Figure 4.2 20
Figure 4.3 21
Figure 4.4 22
Figure 4.5 23
Figure 4.6 24
Figure 4.7 25
Figure 4.8 26-28
Figure 4.9 29-31
Figure 4.10 32
Figure 4.11 33-34
Figure 4.12 35
Figure 4.13 36
Figure 4.14 38
Figure 4.15 39-41
Figure 4.16 41-43
Figure 4.17 44-47

7. 7
ABSTRACT
The Online banking constitutes an electronic alternative network of payments and benefit of
services. The need of creation of electronic alternative channels has been distinguished well
in advance by the foreign banking organizations, which relied mainly on the outburst that was
observed in the use of internet. The benefits are many, both for the customers and for the
banks. The banks that are activated in the Internet are susceptible mainly to the systematic,
law part and to the reputational risk and the customers of the electronic banking channel are
puzzled concerning to the subject of safety of their transactions and personal data. The aim of
this report is, not only to analyze the meaning of electronic banking and to present all the
alternative providing banking service networks, but also to focus on the advantages and on
the risks that the growth of electronic banking has brought about. The rapid growth of
Information Technology (IT) has tremendously changed the way banking is done worldwide.
For obtaining service the customers need not to visit Brick and mortars structure of the Bank.
All the services of the Bank can be utilized by alternate channels sitting at any location away
from Bank. The influence of IT on banking enables the customer to get all major
operations/decisions with regard to deposits, withdrawals, and investments by just clicking of
a mouse on a computer or at an Automatic Teller Machine (ATM) or mobile. Direct Banking
channels or alternate banking channels can be utilized by banks for acquiring, tracking and
serving customers through multiple channels. An entire range of services including account
opening, fund transfers third party transfers, utility payments can be done through using
direct banking channels.

8. 8
CHAPTER1.INTRODUCTION
1.1 DEMONITIZATION
On 8 November 2016 midnight, the Government of India announced the demonetization of
all 500 and 1000 denomination bank notes of the Mahatma Gandhi Series. The government
claimed that the action would curtail the shadow economy and crack down on the use of
illicit and counterfeit cash to fund illegal activity and terrorism. This scheme has a great
impact on the businesses, common people, and financial institutions along with multi-diverse
industrial background of India. Demonetization represents much more than destabilization; it
has struck a body blow on the economic activity in India. While the proponents of
demonetization may have had good intentions, the suffering it has caused to millions of
Indians is unwarranted. Since Rs500 and Rs1000 notes make up some 86% of the total
currency in circulation in India, especially in the vast rural areas, the pain to what individuals
might experience if 86% of their blood was removed from their bodies. The poor were taken
totally off guard and the banking infrastructure in the hinterland is rather limited. The tech
class has poor exposure to critical social theory in order to understand the impact on the
ground. There is an empathy deficit.
1.2 FACTS ABOUT DEMONETIZATION 1946, 1978AND 2016
The term demonetization isn't new to the Indian economy. The most elevated group note at
any point printed by the Reserve Bank of India was the Rupees 10,000 note in 1938 and again
in 1954. Be that as it may, these notes were demonetized in January 1946 and again in
January 1978, as indicated by RBI information. The objective was to battle tax avoidance by
"dark cash" held outside the formal financial framework. In 1946, the pre-freedom
government trusted demonetization would punish Indian organizations that were covering the
fortunes amassed providing the Allies in World War II. It ended up becoming more like a
money change drive as the administration couldn't accomplish quite a bit of benefit in the
desperate economy around then. In 1978, the legislature demonetized banknotes of 1000,
5000 and 10,000 rupees, again in the expectations of controling fake cash and dark cash. The
Wanchoo Committee had prescribed the legislature to pull back the cash in light of the fact
that the nation was experiencing a troublesome period In 2012, the Central Board of Direct
Taxes had suggested against demonetization, saying in a report that "demonetization may not
be an answer for handling dark cash or economy, which is to a great extent held as benami
properties, bullion and adornments."

9. 9
Demonetization is an apparatus to fight Inflation, Black Money, Corruption and Crime,
debilitate a money subordinate economy and help exchange. Its strategy of the legislature by
prohibiting Rupees 500 and 1000 cash notes has impacted all the edge of the economy. Its
impact on Banking Sector is critical as Bank is a middle for directing the legitimate delicate
cash to all needs of the general public. The greatest recipients of demonetization are Banks. It
influenced the banks to acknowledge the stores with no cost of advancement and definitely
expanded liquidity to position of the banks. The present examination is made out of
accessible writing on post demonetization. It depicted the impact of demonetization on
Banking Sector. It enveloped the current choice of the focal government on Demonetization
and its progressive impact on Indian keeping money segment.
Banks are core part of any economy. They channelized the money to the smooth functioning
of different sectors. Initiatives of Green Banking, made the banks to transform conventional
banking services into modern banking services. The products and services are offered
through electronic devices with the help of internet. Now a day, bank services are catered at
the finger tip of customers. Surgical Strike on Black Money called ‘Demonetization’ brought
enormous changes in all the sectors of the country. Banks are not exceptional from the
influence of Demonetization and it made vibrations in the operations as well as products and
services of Banks. It created greater demand to digital banking services where cashless
transactions are prioritized. Day to day operations of Banks are affected and found tough in
Management of liquidity and Employees. It made greater influence on Management of
liquidity and its demand raised by customers in exchanging of their banned currency notes
while minimizing risk and maximizing quality of service. At the same time meeting the
guidance of Reserve Bank of India was challenging. Demonetization has disturbed the bank
operations and made the employees to work under unconditional stress in extended working
hours of a day. Most of the banks were not able to discharge other banking services while
exchanging the banned currency notes. Hence, the present study is made to figure out the
influence of demonetization on banking sector. It showcases post demonetization effect on
banks and its operations.
1.3 DEMONETIZATION AND BANK OPERATIONS
Demonetization has acquired plenty of difficulties augmentations to the difficulties which are
as of now looking by Banks. The impacts were here and now and long haul sees. In here and
now, it disturbed the banks and focused on emphatically to do bank tasks and in long run it
helped the banks to pool the stores without acquiring of any cost. Here are four impacts of
demonetization on Banks.

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1. Increment in Deposits: demonetization has expanded the stores in Banks. Unaccounted
cash as Rs.500 and Rs.1000 were streaming to the Banks and the sizes of stores have been
expanded. It helped the banks to snatch the stores and increment their stores.
2. Fall in cost of Funds: Over the previous couple of months, the stores are expanded. It drove
the banks to keep a noteworthy piece of stores as money stores. PSU Banks have a lion share
(more than 70%) of the stores and greatest gainers of the ascent in stores, prompting lower
cost of assets.
3. Interest for Government Bonds: After sharp ascent in stores on post demonetization, banks
began loaning such surplus stores to the RBI under the turnaround repo choices. PSU Banks,
especially, conveyed abundance supports in government bonds. The arrival on bond venture
is probably going to add 15 to 20 for every penny increment in the income of banks.
4. Droopiness in Lending: Lending development of the banks is significantly less even after
demonetization and its effect of development in the measure of open store. Banks have
endeavored to loan the cash to the destitute gathering by lessening their financing costs, yet it
contracted in the course of the most recent couple of months.
1.4 RESULTS OF POST DEMONETIZATION ON BANK OPERATIONS
There are certain and negative consequences of Post Demonetization on Bank tasks. Both
have affected Banks' liquidity and gainfulness and workers as well. The accompanying are
sure aftereffects of demonetization.
1. Free stream of stores: Banks have picked up stores considerably after demonetization
which they can contribute for enhancing their liquidity and productivity.
2. Improved computerized Interface: Improvement in advanced instruments and
hardware to execute bank exchanges has kept away from money misfortune for
different reasons like burglary, dacoits and misappropriations.

11. 11
3. People's surplus at Bank: Cash is a sit without moving resource which does not yield
any pay unless kept in a bank. In this way, demonetization made the general
population to keep their surplus cash in a bank to acquire a type of salary.
4. Increased number of Customers: Demonetization has impacted open to come and
execute exchanges with banks. It made even a non-salary amass individuals to visit
bank and have a record. It expanded number of record holders in banks while
expanding store corpus. Essentially, Demonetization has conveyed some operational
issues to Banks.
It irritated Banks' Employees, Operational Costs and Profitability. The accompanying are
negative impacts of Demonetization.
1. Cash Reserve Requirement: 100% CRR on incremental stores implied that banks did
not procure any enthusiasm on Rupees 3 Lakh crore of stores for almost a fortnight.
2. Waived off ATM Charges: ATM charges were deferred off amid prohibited note trade
and banks acquired lost Rupees 20 in each exchange.
3. Waived off Merchant Discount Rate: Banks acquired loss of 1% markdown charges
rom vendors on utilizing of each card exchange.
4. Non Selling of Loans: Banks were centered around trading money notes and they
were not ready to offer any advance items. This made banks to check their loaning
exercises.
5. Reduced SMEs Sale and impact on NPAs: During demonetization, some SME
organizations had seen their business drop by 50-80 percent and could default in their
portions to banks. This drove the banks to consider it as NPA and influenced its level
in banks.
6. Stress on Employees: Bank Employees were put under strain and extra time
workplace. It discouraged them and kept imbalanced way of life. Barely any cases
were discovered where the representatives submitted suicide because of work weight.

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1.4.1 DIFFICULTIES OF A CASHLESS PROVINCIAL ECONOMY
• Currency commanded economy: High level of trade flow out India. Trade out flow ads up
to around 13 for each penny of India's GDP.
• Transactions are fundamentally in real money: Nearly 95 for every penny of exchanges
happen in real money. Substantial size of casual/disorderly division elements and laborers
incline toward money based exchanges. They don't have required computerized proficiency.
• ATM utilize is for the most part for money withdrawals and not for settling on the web
exchanges: There are expansive number of ATM cards including around 21 crore Rupee
cards. Be that as it may, almost 92 for every penny of ATM cards are utilized for money
withdrawals. Numerous holding of cards in urban and semi-urban regions demonstrate low
provincial entrance.
• Limited accessibility of Point of Sale terminals: According to RBI, there are 1.44 million
POS terminals introduced by different banks crosswise over areas toward the finish of July
2016. Be that as it may, the majority of them stay in urban/semi-urban regions.
• Mobile web infiltration stays feeble in rustic India: For settling exchanges carefully, web
association is required. Be that as it may, in India, there is poor availability in provincial
territories. Also, a lower proficiency level in poor and rustic parts of the nation, make it
hazardous to push the utilization of plastic cash on a more extensive scale. This is being
overwhelmed by application BHIM (Bharat Interface for Money) propelled by the Prime
Minister which will chip away at USSD i.e without portable web.
1.4.2 DEMONETIZATION DISABLED COUNTRY BANK LOANING
The note boycott hurt country India, advance development was far beneath its pre-
demonetization levels.
In reality, in the second 50% of FY2017, bank loaning to country Haryana, Punjab, Goa,
Maharashtra and Kerala contracted. Loaning to rustic Maharashtra fell by as much as 9.2%.
Placing that in context, bank credits in the second 50% of FY16 to provincial Haryana
expanded by 18% and to country Punjab by 12.2%, while rustic Maharashtra saw an
expansion in loaning of 5..8%. Not a solitary state had demonstrated a constriction in rustic
loaning in the second 50% of FY16. At the end of the day, the stoppage in provincial loaning
in the second 50% of FY17 was extremely unusual and might be ascribed to a great extent to
demonetization.

13. 13
The provincial parts of western India endured the worst part, with credit development falling
by 5.1% in the second 50% of FY17. Provincial northern India and metropolitan western
India additionally observed low credit development.
Nationalized banks' credit development was 2.7% in the FY17 second half, contrasted with
8.8% development in second half FY16. SBI and its partners saw their credit development
tumble to 7.8% in the second 50% of FY17 contrasted with 13.7% in the second 50% of the
earlier year. Private Banks' credit development was 10.1% in the second 50% of FY17
contrasted with 18.8% in the year-back period. Unmistakably, every class of banks was
influenced.
Objectives of the Study
1. To study the influence of demonetization on Banks operations.
2. To find out positive and negative results of post demonetization on Bank operations.
Methodology of the Study
The study is based on Secondary Sources of data. It includes available published literatures
such as books, journals, newspapers and relevant government websites. The study tries to
look at the extent of demonetization influence on normal banking operations.

14. 14
CHAPTER2: REVIEW OF LITERATURE
1. Nithin and Sharmila (2016) studied demonetization and its impact on Indian
Economy. They opined that demonetization has short term negative impact on
different sectors of the economy and such impacts are solved when the new currency
notes are widely circulated in the economy. They also argued that the government
should clear all the problems created due to demonetization and help the economy to
work smoothly.
2. Nikita Gajjar (2016) deliberated a study on Black Money in India: Present Status
and Future Challenges and Demonetization. She described the framework, policy
options and strategies that Indian Government should adapt to tackle with this issue
and the future challenges to be faced by the Government.
3. Vijay and Shiva (2016) examined demonetization and its complete financial
inclusion. They felt that the rewards of demonetization are much encouraging and the
demonetization is in the long-term interest of the country. They expressed that it had
given temporary pain but it taught financial lessons. It influenced banking industries
to do considerably investment on digitalization of banking services.
4. Manpreet Kaur (2017) conducted a study on demonetization and impact on Cashless
Payment System. He said that the cashless system in the economy has many fruitful
benefits less time-consuming, less cost, paper less transaction etc. and he expected
that the future transaction system in all the sectors is cashless transaction system.
5. Lokesh Uke (2017) researched on demonetization and its effects in India. He studied
positive and negative impact of demonization in India. The study was based on
secondary data available in newspaper, magazines etc. The main purpose of
demonetization is to eradicate the black money and diminish the corruption. He
expressed that Government of India has become success to some extent.
Demonetization had negative impact for a short duration on Indian financial markets.
But he said that the real impact will be shown in future.
6. Sweta Singhal (2017) carried out research on Demonetization and E Banking in
India. It was a case study to check the awareness level of people of rural areas in India
about e-banking facilities and how much it has increased after demonetization. A

15. 15
sample size of 100 was used with ANNOVA test to show that rural people differ
much with urban people in their awareness level as well as usage level of e-banking.
It was found that urban male youth have higher awareness and usage of e-banking.
She felt that the study shall also helpful for banks to improve their e-banking
facilities.
7. Sherline T.I (December 2016) has undertaken the research on “Demonetization as a
prelude to complete financial inclusion “. The main objective of the study was to
understand the importance of demonetization as a measure of financial inclusion.
Financial inclusion mainly stands for, the delivery of the financial services at the
affordable cost to the low income segments of society. As per the report financial
inclusion can boost the savings as well as credit availability. The study shows that this
move of the Government has likely to create long term benefits. Moreover medium to
long term Current account and saving account (CASA) ratio could improve. Moreover
demonetization would reduce cash transaction the real estates, which may decrease
the price of that avenues which make it affordable to general public. Moreover the
near future inflation will decrease due to less cash transaction.
8. M. Angel Jasmine Shirley (February, 2017) has studied about the “Impact of
Demonetization in India” in her research paper. In the first part of the paper, the
impact over Indian economy had been explained. As per the research, the BSE
SENSEX and NIFTY 50 stock had been fall near about 6% on the very next day.
Moreover on the later on days, the country felt severe shortage of the cash. Moreover
due to lack of cash overall production had decreased. Banks had not enough new
currency for the exchange of the old notes, which breakdown the overall economic
system. Moreover in the paper impact of the demonetization over world economy also
shown. The first thing that happened after demonetization was decrement in to overall
consumption of commodities which results in to decrease in the export-import.
Moreover there was a major impact over the domestic sectors, reduction in the
Government liability, farming and fishing industry, business, drop in industrial output,
black money, impact over counterfeit currency, hawala, bank deposits, jewelry and
real estate, IT sector etc. Findings in this sectors says that, though demonetization is a
good concept to grab the black money holders, most of black money is kept in form of
land, gold, real estate etc. “Not all black money is in cash, not all cash is black
money”. People face too much inconveniency due to improper planning about post
demonetization. Moreover for number of days they had spent their time by standing in
queues. To decline over all negative impact of it, ways are to focusing over tax aspect,
cash availability, and elimination of loopholes.
9. Chabi Gupta (December 2016) had studied about the payment banks and
demonetization. To explain her research point, she had firstly explained about the

16. 16
Indian banking sector. Payment banks are generally niche banking set up by RBI,
payment banks provides small saving accounts and payment services mainly for low
income household, small businesses etc. Then she had explained the overall impact of
demonetization move. According to the Reserve Bank Of India (RBI) figures, as of
March 2016 currencies in circulation amounted to Rs.16,415 billion of this 500 notes
were of around 47.8%in value and 1000 were of 38.6% in value. Jointly they had 86%
value in the economy. Many banks like HDFC, ICICI and AXIS are exploring to
launch the contact less debit and credit card. It will allow the customers to use card
without swipe.
10. Mr. Brijesh Singh and Dr. N. Babitha Thimmaiah (January 2017) in their
research paper studied the effect of demonetization in terms of “Won or lost”. By
using the secondary data method i.e. articles, they had conducted their study. In the
study report they had tried to explain the concept of cashless economy by taking the
reference of Woodford (2003). It is not all about how much money you are having in
your wallet, you can pay by any of the bank card or banking transfer. In the research
paper they had shown the effect of demonetization in the areas like, cash rush, stock
market, transportation, agriculture, banking, business, income tax, railways etc. There
are no exact proofs of exact black money holding in cash but studies show that around
8% of black money is held in cash. According to the Centre for Monitoring the Indian
Economy (CMIE), the transaction cost of demonetization until 30th December, 2016
is estimated around Rupees 1.28 lakh crore. As per R. Gandhi, Deputy Governor of
RBI, speaking on 7th December 2016, Rupees 11.5 lakh crore has been already
deposited at bank out of total 14.5 lakh crore which means still 3 lakh crore are
unidentified.
11. Sherline T.I (December 2016) has undertaken the research on “Demonetization as a
prelude to complete financial inclusion “. The main objective of the study was to
understand the importance of demonetization as a measure of financial inclusion.
Financial inclusion mainly stands for, the delivery of the financial services at the
affordable cost to the low income segments of society. As per the report financial
inclusion can boost the savings as well as credit availability. The study shows that this
move of the Government has likely to create long term benefits. Moreover medium to
long term Current account and saving account (CASA) ratio could improve. Moreover
demonetization would reduce cash transaction the real estates, which may decrease
the price of that avenues which make it affordable to general public. Moreover the
near future inflation will decrease due to less cash transaction.

17. 17
CHAPTER3: RESEARCH METHODOLOGY
3.1.1 Secondary Data-Secondary data was gathered from the source, articles from scholarly
diaries and books to have thorough see of the subject and encourage speak to and approve the
study questions
3.1.2 Primary information - Primary data was gathered with a guide of a frame conveyed
through on-line channels. the data gathering was finished utilizing a type of twelve inquiries
(counting statistic data), that comprised of shut and open finished inquiries. The frame was
intended to accumulate learning with respect to the discernment and effect of big name
supports on the buyer's buy call."
3.2 RESEARCH DESIGN
"This report is contained both exploratory and engaging examination.
3.3 POPULATION
The populace for testing was incorporated the clients towards big name underwriting.
3.4 SAMPLE
The survey was set up for the clients

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3.4.1 Sample estimate
A sum of thirty reactions were gathered from respondents beginning from individuals of 18-
35 years. Accommodation inspecting method was received for this examination.
3.4.2 Sampling procedure
The method used for analyzing is non likelihood accommodation inspecting, which alludes to
that procedure for test assurance in which people from the populace are picked in perspective
of their relative access and where the analyst can pick the respondent as indicated by his own
specific comfort."
3.5 TOOLS
"Devices utilized as a part of this examination incorporate the bar outlines, pie diagrams, and
the rate to demonstrate the correct esteems in view of the reaction which the overview got
among the respondents.
3.6 SURVEY DEVELOPMENT
Survey was made to examine the purposes for"

19. 19
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
1. GENDER
Figure.4.1
INTERPRETATION: The pie chart above shows that proportion of the gender differs by
15% where the females have responded by 35% and male by 65%. The pie chart above shows
that the research done on the people doesn’t differ much in the gender which means that the
report is not bias towards any side of the gender.
Gender No of Responses Percentages (%)
Male 24 65
Female 16 35

20. 20
2. AGE
Figure.4.2
INTERPRETATION: This shows that people who have filled this questionnaire falls in the
category of 18-30 age group. Not even single person has responded from the 0-15 age group
category which shows that the most of the respondents are adult. In the pie chart above the
87% of the respondents fall in the 15-25 age group category.

21. 21
3. EDUCATION LEVEL
Figure.4.3
INTERPRETATION: This shown that the majority population who filled the form is from
the graduate students 92.5%.Then 2.5 % are professionals and 5% are post graduate students.

22. 22
4. OCCUPATION
Figure.4.4
INTERPRETATION: The above pie chart shows the occupation of the respondents which
mainly constitutes of students.78.5% of the respondents are students which means the
research is mainly from the perspective of students than any other profession.7.5% of the
respondents have business as their profession and to the co-incident 7.5% respondents belong
to the service class.5% of them are teacher while the remaining 1.5% are sales person. The
occupation is necessary in the research as it shows the view of the different sectors of the
profession.
Profession %(percentages)
Student(others) 87.5
Business 7.5
Service class 7.5
Teacher 5
Sales person 1.5

23. 23
5. SINCE HOW MANY YEARS ARE YOU USING INTERNET?
Figure.4.5
INTERPRETATION: It’s shown that 40% of people are using internet from more than 10
years, 32.5% from 4-7years, 25% from 7-10 years and 2.5%are using the same from not more
than 4 years.

24. 24
6. HOW OFTEN DO YOU USE INTERNET EVERYDAY
Figure.4.6.1
Figure.4.6.2
INERPRETATION: It shows that 65% people are using internet more than 4 hours every
day. Similarly 22.5% from 2-3 hours and 12.5% from 1-2 hours internet every day.

25. 25
7. ARE YOU AWARE ABOUT
Figure.4.7
INTERPRETATION:
As shown in the figure.

26. 26
8. WHAT WAS THE FREQUENCYOF USAGE OF THESE
SERVICES? (BEFOREDEMONETIZATION)
Figure.4.8
Figure.4.8.1

27. 27
Figure.4.8.2
Figure.4.8.3

28. 28
Figure.4.8.4
Figure.4.8.5
Figure.4.8.6

29. 29
INTERPRETATION: It shows that frequency of usage of banking services of different
modes before demonetization was as under.
SERVICES MONTHLY Less than
one month
WEEKLY EVERYDAY NEVER
NET BANKING 27.5% 32.5% 12.5% 2.5% 25%
MOBILE
BANKING
32.5% 25% 25% - 17.5%
PAYMENT
WALLETS
37.5% 22.5% 15% 10% 15%
CRYPTO
CURRENCY
7.5% 15% 5% - 72.5%
ONLINE
TRADING
17.5% 15% 7.5% 2.5% 57.5%
ONLINE
INSURANCE
PURCHASE
10% 15% 5% _ 70%
9. WHAT IS THE FREQUENCYOF USAGE OF THESE SERVICES?
(AFTER DEMONETIZATION)
Figure.4.9.1

30. 30
Figure.4.9.2
Figure.4.9.3
Figure.4.9.4

31. 31
Figure.4.9.5
Figure.4.9.6

32. 32
Figure.4.9.7
INTERPRETATION: INTERPRETATION: It shows that frequency of usage of banking
services of different modes after demonetization was as under.
SERVICES MONTHLY Less than
one month
WEEKLY EVERYDAY NEVER
NET BANKING 30% 22.5% 20% 12.4% 15%
MOBILE
BANKING
27.5% 27.5% 22.5% 15% 7.5%
PAYMENT
WALLETS
27.5% 22.5% 12.5% 30% 7.5%
CRYPTO
CURRENCY
15% 17.5% 7.5% 2.5% 57.5%
ONLINE
TRADING
17.5% 17.5% 10% 5% 50%
ONLINE
INSURANCE
PURCHASE
12.5% 25% 5% 2.5% 55%

33. 33
10. WHICH ATTRIBUTE OF THE BANK DO YOU VALUE THE MOST?
Figure.4.10
Figure.4.10.2
INTERPRETATION: Most of the people feel that the most important attribute of the banks
is the quality of the services they provide to their customers (35%). Further 25% people
believe that the security is most important attribute of the banks. 22.5% chooses technology
and 10% select trust is the most important attribute of the banks. Remaining 5% prefer
location as the most important attribute. According to the preference of the attribute people
select their banks where they can deposits their money.

34. 34
11.WHICH FACTOR PROMOTES YOU TO USE THE NEW
TECHNIQUES IN BANKING?
Figure.4.11
Figure.4.11.2
INTERPRETATION: technology is also one of the biggest factor for the success of the
banking function nowadays, whereas 29.8% people feel that new technology reduces their
time of transaction in the banks and 28.6% feels it’s easy to use so this is beneficial for them
in banking transactions.22.8% people feel that new technology brings cost effectiveness in
the transactions.

35. 35
12.CUSTOMER LEVEL OF USAGE OF TECHNOLOGY
Figure.4.12
INTERPRETATION: A shown in the figure

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13.HOW FREQUENTLY DID YOU USE THE FOLLOWING
BANKING SERVICES PER MONTH (BEFORE
DEMONETIZATION?
Figure.4.13.1
INTERPRETATION:
Figure.4.13.2

37. 37
Figure.4.13.3
Figure.4.13.4
Figure.4.13.5

38. 38
Figure.4.13.6

39. 39
14. HOW FREQUENTLYDID YOU USE THE FOLLOWING BANKING
SERVICES PER MONTH(AFTER DEMONETIZATION)
Figure.4.14.1
INTERPRETATION:
Figure.4.14.2

40. 40
Figure.4.14.3
Figure.4.14.4
Figure.4.14.5

41. 41
Figure.4.14.6
14.METHOD OF PURCHASING OR SPENDING ON (BEFORE
DEMONETIZATION)
Figure.4.15.1

42. 42
INTERPRETATION:
Figure.4.15.2
Figure.4.15.3

43. 43
Figure.4.15.4
Figure.4.15.5
Figure.4.15.6

44. 44
15.METHOD OF PURCHASING OR SPENDING ON (AFTER
DEMONETIZATION)
Figure.4.16.1
INTERPRETATION:
Figure.4.16.2

45. 45
Figure.4.16.3
Figure.4.16.4

46. 46
Figure.4.16.5
Figure.4.16.6

47. 47
17. ATTITUDE OF BANK EMPLOYEES DURING DEMONETIZATION
PERIOD
Figure.4.17
INTERPRETATION: attitude of the banks employees during the period of demonetization
is evaluated on the basis of the customers ( who judge the service quality of the banks),55%
of people rated banks employees 3 star and 15% people feels that employees attitude was not
appropriate towards them whereas,5% people voted them 5 stars for their attitude.

48. 48
CHAPTER 5: FINDINGS AND CONCLUSION
Demonetisation of old currency notes surely has had some positive impact like reducing the
cash flow to terror organisations, dismantling of counterfeit currency infrastructure, better
income tax and indirect taxation, boost to digital economy. However, it has come at a huge
social and economic cost. Demonetization costs are estimated at Rs 1.28 lakh crore to the
economy for the 50-day time period till the end of depositing period of old currency. This
includes a cost of Rs 17,000 crore towards the government and the RBI for implementing the
demonetisation process in India.
Demonetisation is a one-time event and will not have much long term effect. It alone is not
sufficient to counter black money and corruption in the country; rather other measures are
more crucial like bringing the offshore tax evaders to book whose names figure in the
Panama papers, raid on benami properties, making donations to political parties open to
public scrutiny and making it mandatory for all donations above Rs 2000 to political parties
and religious places to be through digital means only.
This entire exercise seemed more like a carpet bombing than a surgical strike where the vast
majority of honest and law abiding citizens had to undergo terrible hardships in order to catch
the few black sheep who have hoarded black money and who also managed to convert their
black income into white.
By observing the information gathered here through the primary and secondary data I can
conclude that, this time demonetization has demonstrated by one means or another more
effective as contrast with past two. The scenario has changed as compared to the previous
one. Individuals turned out to be more cognizant about on the web managing an account.
After referring to the primary data I observed that people are losing trust on the banking
system. Bank representatives had work ceaselessly without taking day away from work. Their
co-activity matters a considerable measure. In spite of the fact that aggregate dark cash had
not been gotten by this apparatus, this instrument demonstrates productive for at any rate
making dread in the brains of dark cash holders. It was obligatory for the Government to
make a few strides like demonetization to diminish debasement, fear mongering, to curb
black money etc. Demonetization would be sure for areas like saving money that is the
banking sector and foundation in the medium to long term and could be negative for parts

49. 49
like purchaser durables, extravagance things, adornments, genuine domain and unified
segments, in the close to medium term. It can likewise prompt enhanced duty consistence,
financial adjust, bring down swelling, bring down debasement, finish end of phony money, a
stage for supported financial development in the more drawn out term. Thus the investments
and the online transactions have increased and in addition to this people have stopped saving
their money in banks. But it might result as in cyber frauds if the online transactions keep on
increasing.

50. 50
CHAPTER6: REFERENCE

51. 51
APPENDIX
Questioner
1. NAME:-
2. GENDER:-
3. AGE:-
4. OCCUPATION:-
5. SINCE HOW MANY YEARS ARE YOU USINGINTERNER
0-4YRS 4-7YRS 7-10YRS MORE THAN 10 YRS
6. HOW OFENT DO YOU USE INTERNET EVERY DAY
1-2 2-4 MORE THAN 4 HRS
7. ARE YOU AWARE ABOUT
NET BANKING
MOBILE BANKING
PATMENT WALLET
CRYPTO CURRENCY
ONLINE TRADING
ONLINE INSURANCE
8. WHAT WAS THE FREQUENCY OF USAGE OF THESE SERVICES (BEFORE
DEMONETIZATION)
NEVER LESS THAN ONE MONTH MONTHLY WEEKLY EVERYDAY
NET BANKING
MOBILE BANKING
PATMENT WALLET
CRYPTO CURRENCY
ONLINE TRADING
ONLINE INSURANCE
9. WHAT IS THE FREQUENCY OF USAGE OF THESE SERVICES (AFTER
DEMONETIZATION)
NEVER LESS THAN ONE MONTH MONTHLY WEEKLY EVERYDAY
NET BANKING
MOBILE BANKING
PATMENT WALLET
CRYPTO CURRENCY
ONLINE TRADING
ONLINE INSURANCE

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10. SINCE HOW MANY YEARS ARE YOU USINGTHIS SERVICES?
11. WHICH ATTRIBUTE OF THE BANK DO YOU VALUE THE MOST?
QULITY OF SERVICES
TECHNOLOGY
TRUST
LOCATION
TYPE OF THE BANK
SECURITY
12. WHICH FACTOR PROMOTES YOU TO USE THE NEW TECHNIQUES
REDUCE TIMES OF TRANSACTIONS
COST OF EFFECTIVNESS
EASE TO USE
TECH SAVVY
13. CUSTOMER LEVEL OF USAGE TECHNOLOGY
CONNECTED INTERNET AT HOME
ATM’S
USES OF E-MAIL
ONLINE BANKINGSERVICES
E-PAYMENT
ELECTRONICS FUNDS TRANSFERS
CREDIT CARD SERVICES
14. HOW FREQUENTLY DID YOU USE THE FOLLOWINGBANKINGSERVICES PER
MONTH (BEFORE DEMONETISATION )
NEVER LESS THAN ONE MONTH MONTHLY WEEKLY EVERYDAY
BRANCH BANKING
ATM’S
INTERNET BANKING
TELEPHONE BANKING
MOBILE BANKING

53. 53
15. HOW FREQUENTLY DID YOU USE THE FOLLOWINGBANKINGSERVICES PER
MONTH (AFTER DEMONETISATION)
NEVER LESS THAN ONE MONTH MONTHLY WEEKLY EVERYDAY
BRANCH BANKING
ATM’S
INTERNET BANKING
TELEPHONE BANKING
MOBILE BANKING
16. METHODS OF PURCHASINGOR SPENDINGON (AFTER DEMONETISATION)
CASH DEBIT/CREDIT CARD UPI MOBILE WALLET
VEGITABLES
GROCERIES
EATINGOUT
TRAVELLING
SHOPPING
17. METHODS OF PURCHASINGOR SPENDINGON (AFTER DEMONETISATION)
CASH DEBIT/CREDIT CARD UPI MOBILE WALLET
VEGITABLES
GROCERIES
EATINGOUT
TRAVELLING
SHOPPING
18. ATTITUDE OF BANK EMPLOYESS DURINGDEMONETISATIONPERIOD
1 2 3 4 5
19. WHAT AN THE VIEW ON IMPACT OF DEMONETISATION (POSITIVE OR NEGATIVE
IMPACT)