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DEMONETIZATION - IMPACT ON INDIAN ECONOMY

KOMAL PAL

Komalpal91295@gmail.com

ABSTRACT

Demonetization is not a gigantic catastrophe like universal banking sector disaster of 2007; but at the
similar time, it will operate as a liquidity fright which has disrupt all economic activities.

The squabble posited in support of demonetization is that the liquidity that would extinguish would be
black money and hence, should be lawfully extinguish to place right the obstinate enticement makeup
in the economy. Though the previous literature has shown that there are no facts available to prove this,
thus it would be foolish to quarrel for this prospect.

While the facts are not available to anybody, it would be foolhardy to argue that this is the only
possibility. Therefore, it is crucial to assess the short run and medium-term impact that such a liquidity
fright is anticipated to have on the economy. In additional, the bang of such a liquidity shock would
differ depending on the scope to which the governmentdecide to demonetize.

This research paper will definitely show the impact of such a move on the ease of use of credit,
expenditure, and level of economic activity and government funds.

Keywords: demonetization, cashless transactions, credit, tax evasion

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(A) INTRODUCTION

In India the demonetization declared at prime time on November 8 is among the uncommon, bold
economic strategy choices in the historical backdrop of independent India. This decision is taken to
crack down the use of black money to fund illegal and activity and terrorism. The plan of
demonetization began 6-10 months prior but it was highly confidential with only 8-10 people.

While the general response of people in general was doubted, however some areas of society responded
unusually to this fearless step by the government which adhered as a thunderbolt to the money "black
money holder of the nation. While the competitor of the government called it a "Tughlaqi Farman" the
media houses called it a "masterwork by the PM. In this Report, impact of demonetization on the
Indian economy has been done. In any case, clearly understand that any policy of government will have
both positive and negative impacts on the society and arguments can be applied based on which side one
represents. So, an unbiased examination is required to identify the impact of demonetization.

Let us get straight to the point that while the negative effect of such choices will be felt instantly but
positive effect can be felt after a period of time. Successful and effectiveness of scheme is depending on
its implementation.

According to the government there is need of implementing demonetization so as to-

1. to reduce the corruption

2. to make the black money worthless
3. to block the funding for terrorist activities
4. to remove the fake currency from the market

As per the annual report of Reserve Bank of India (RBI) of 31 marches 2016 declared that total flow of
bank notes valued to 64.42 lakh crore of 500 and 1000 notes. As per report of RBI on 28 November
2016, the total amount of 8.11 lakh crore of old notes has been deposited by the customers till 27
November 2016. But between this governments also provide schemes to pay of tax and to convert black
money into white.

'According to the report of HDFC advisories group demonetization has long term benefit for the
Indian economy. Removal of major proportion of black money will added to the finance of the
government. Demonetization will have strong implication as the government would get money to
spend without borrowing money from the market.
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According to' International Journal of Research in Economics and Social Sciences (IJRESS)'
demonetization of 500 and 1000 notes puts India into liquidity crises and it will lead to cash crunch that
crash GDP growth to 5%.

OPERATIONAL AND IMPLEMENTATION ISSUES

The administration is confronting a great deal of operational troubles and usage is a noteworthy issue
because of the size of the issue. Since 86% of the cash available for use was constituted by 500 and
1,000 named noticed this has put a transitory and prompt brake to a segment of the economy. The
arrangement of government to encourage trade of money and store overabundance money with Banks
flopped halfway because of components out of hand. Trading/saving cash of populace of 125 crore
individuals is a colossal undertaking. The issue intensified as a large portion of the ATMs ran dry
because of inaccessibility of trade out the type of 100 rupee notes. The ATM machines are not adjusted
to administer new cash notes of 500 and 2000 which are littler in size. Promote, ATM machines
required new programming to comprehend the 2000 note section and day by day constrain. Pundits
call it awful arranging, would it say it was so? Answer is not in the slightest degree. Any arranged
adjustment practice preceding demonetization would have without a doubt vanquished the move.
Mystery has no colleagues; anyone familiar with mystery is its first foe. More are the colleagues lesser
are the odds of survival for mystery.

IMPACT ON COMMON MAN

Most likely the normal man is hit hardest, particularly the individuals who are every day workers and
have no store of money. Indeed, even their small money resources have been immobilized and are
confronting issues to meet their every day fundamental needs. The work class who earned/spared their
pay in 500/1000 notes were hit since they didn't have cash to buy from the market. Independent ventures
included generally in real money exchanges have endured; the move has dried their income as the clients
attempted to discover money. Individuals with restorative crises and weddings have been hit hard
because of money crunch. The towns and rustic territories needed to shoulder the most warmth as the
bank offices were distant from the town and some of them don't have a bank office. Be that as it may, in
spite of the hardships confronted by the general population the general opinion is sure as individuals
have been strong of the administration in its battle against the debasement.

IMPACT ON ECONOMY
Purchasing Power and currency in circulation
Open has obtaining power through bank stores, trade out hand and in extraordinary case through
liquidation of advantages. The demonetization will affect buying power accessible in type of trade out
hand. At present trade out hand can be extensively isolated into two basins trade out hand however
available for use and trade out hand yet accumulated and not available for use on regular schedule. Most
families have some money stored for future stormy days. Both sorts of money can be further bucketed
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into authentic money and ill-conceived money. With the demonetization drive all true blue money will
return to framework either in type of stores or trade of cash. A little bit may not come as open may miss
dead line or can't store as they will most likely be unable to legitimize high money accumulated. Utmost
of 2.50 lakh could be an issue in bringing all honest to goodness money over into framework. While
intelligently all ill-conceived money ought not to come to framework it is normal a huge part may at
present come to framework through different questionable traps utilized. Ill-conceived money according
to the reports is returning to framework through abuse of Jan Dhan account, utilizing 2.50 lakh point of
confinement of different contributors, trade of old with new on everyday schedule through enlisted
representatives, propel installments and numerous more candid traps. It is here that the plan confronts
significant difficulties of execution. Sadly, it is an issue of character and unskilled populace and
enthusiasm to make a snappy buck.

IMPACT ON FAKE CURRENCY

"According to RBI Report amid 2015-16 fake money of 406 Crore was seized for the most part in
high category. Knowing how troublesome is for basic man to distinguish fake money, which now and
again can pass investigation of even brokers, one can just figure the measure of fake cash available for
use. SES say that regardless of the possibility that recognition level was high at 10% ", measure of fake
cash available for use would be 4,000 Crore. Such a huge entirety of cash which is for the most part
utilized for hostile to national movement and backings fear based oppression and Naxalistes and other
association, posture threat". The present torment that populace is experiencing is significantly less and
merits experiencing for bigger great of the country. The Indian individuals, howsoever unskilled they
might be, have exhibited that they do comprehend what is useful for their nation. In any case, the
administration ought to guarantee by making different strides that fake cash of new notes is not
delivered and brought into the framework.

SOCIAL IMPACT
Feeling of equity for decades, there has been an inclination among fair citizens that they have been
scammed as while they pay assesses, the individuals who evade duties are in an ideal situation and don't
confront results. Moreover, degenerate had unbalanced buying power. In one stroke, years of treachery
have been exacted retribution by government. Legitimate citizens have motivation to be elated and
upbeat. The feeling of equity will get further reinforced when the cash so recouped is utilized by
government in effective watertight way for foundation and social plans.

TEAMWORK & NATION BUILDING

This choice and practice has exhibited what cooperation can accomplish. A mammoth errand by any
measuring stick, attempted by nearly with no arranging is being done with achievement (despite the fact
that bit complexities and torment) exhibit that Team Work can accomplish inconceivable. Bank staff has
worked with extraordinary energy. The venture has turned into a national venture and it appears and
feels that at the end of the day without a war with foe, a feeling of patriotism has been encouraged. All
Indians, with special case of displeased, unmotivated, fizzled, washouts and envious have upheld and
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taken an interest in the practice over. They have put stock in the expression of Prime Minister that it is "a
war against Black Money". Indians have demonstrated their confidence, now it is turn of the legislature
and PM to offer profit to all kindred Indians by satisfying their fantasies. Give us a debasement free
India, with great foundation and security. WE will together make INDIA awesome. The open door is
once in an existence time opportunity, not very many are fortunate to have it. We should underwrite it
for country building.

WILL THIS END CORRUPTION?

Many contend whether the present stride will end defilement and formation of new dark cash. As
indicated by the sentiment that the present stride alone won't end debasement. It has finished the dark
cash held in type of money for once however the legislature should find a way to stop defilement later
on. The spillage of un-accounted cash into the dark framework must end. Presently, since the
administration has accounted cash in the financial balances it can check for and screen high money
withdrawals.

(B) REVIEW OF LITERATURE

Roshan Kumar M. Bhigania (May 2012), talks about how black money arises, what are the steps
taken by government to control it and what are its impact on the economy. Author uses print media as
the source for data collection. According to the author, black money leads to inflation and it creates
parallel economy. According to data government warnings to the holders of black money will only result
in further inflation due to which the purchasing power of rupee came down.

Sandeep kaur (November2016), talks about the demonetization and its impacts in India on various
factors such as black money and corruption, funding, real estate, election, gold and silver jewellery and
Digital payment. The data was collected from various sources like: reports, magazines, journals,
newspapers, etc. According to the research there is positive impact on the banking and infrastructure.
Demonetization may lead to improved tax compliance. Demonetization gives hike to use of Digital
transaction systems, E wallets and apps. The demand of gold and silver increase because people are
trying to invest their black money. A reduction in cash transaction had seen in real estate market and
terrorism also gets affected because of demonetization.

M. Chelladurai and Dr. V.Sornaganesh (November 2016), refers that demonetization of currency
affected a lot to the business environment. Reduction in black money creates a challenging problem for
the bureaucrats. Demonetization creates cash shortage in business sector. It leads to digitalization. But
due to demonetization many small businesses faced problem of inadequate new currency. Only those
companies and products are less affected by demonetization that has direct reach.

Ashish Kumar Tripathi (November 2016), talks about challenges and problem faced by a common
person, challenge for the person who earn only in the family, challenges for farmers, Challenges for
Families who have any marriage function before 30th December, 2016. According to the author with
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limit is the main problem for the families who have marriage function. A common person notable get the
extended amount from the bank.

Frank Holmes, Modis Demonetization Is a Cure worse Than the Disease(Nov 2016) ,In this paper,
Author's objective is to understand the impact of demonetization on cash flow and to know whether the
execution is correct or not. According to results, Modis demonetization scheme will affect negative on
gold demand in the long run. Demonetization results in reducing the stock of black money. But due to
bad execution Demonetization will hurt low-income and rural families the most.

Cameron McLaughlin and Noriaki Kinoshita(Nov 2016) tries to find our factors affecting the
monetization. According to the results, in economic growth monetization is the key factor. It has been
conclude that many fundamental factors including per capital income, bank deposit rates and financial
sector reforms are associated with long run monetization outcomes.

Roshankumar M. Bhigania (May 2012), tries to understand the reasons for black money, to know the
measures of black money and to suggest some measures for discipline the generation and spread of
Parallel economy of Black Money. According to author, the opportunities for corruption should be
eliminated, the penalty for unreported transition should be made more server and There is a need for a
radical change rather reversal of the attitude of the people. The need is to educate the people and to
change their very work ethos.

Ashok K Lahiri (Oct 2014), Demonetization, cash shortage and the black money, talks about how
demonetization leads to cash shortage, how cash shortage leads to inflation and growth and the impact
of demonetization on black money. According to the published source demonetization leads to hyper
inflation which give to the price of goods and services. Demonetization act as a barrier for converting
black money into white. But due to insufficient data many factors were not considered.

Kavita, Sacchidananda, Sudhanshu, Sengupta and Sri Hari naydu (2014), talks about the impact
of demonetization on short and medium term and the alternative mode of payment. According to the
paper person who was earning and spending in cash is ultimate sufferer, demonetization leads inflation,
demonetization leads to credit creation in increase in credit creation in the economy but there is a need
to upgrade banking and telecom infrastructure need to change consumer behavior towards e-payment.

Deepa krishnan and Stephan Siegel, Effect of demonetization- Evidence from 28 slum
neighborhoods in Mumbai, where the study on the effect of demonetization on people living in slum
area was studied. The survey of 200 families living in slum 28 slums has been conducted. According to
the results people of slum lost income due to demonetization as they were working on daily working
basis. According to results demonetization leads to low rate of expenditure which increase in saving as
well as increase the burden of loans.

Dinesh kumar Gupta, 2016 ,The author's objective of the study is to check the effectiveness of e-
banking for cashless growth in rural areas. According to results due low literacy rate people in rural
area . If government use Hindi or other mother tongue for e banking these are the friendly welcome
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step. Due lack of awareness among potential users e banking is not successful. Technology spread to
rural areas is too slow because of late adoption of technology by India.

Rahul Deodhar, Black money and demonetization In this paper, author objective is to check the
impact of demonetization on black money. For this detailed has been done on the black money and the
sources of black money and how demonetization can control black money. According to reports, black
money can be stop by attacking cash as , attacking cash leads to attacking more of black money .
Demonetization helps to eradicate block money to a great extent.

Pratep Singh and Virender Singh, This paper talks about the impact of demonetization on Indian
economy. For this, author study the experience of impact of demonetization in various countries and
study the probable consequences of demonetization on the economy. Demonetization leads to better tax
ratio to GDP ratio. It will lower the inflation in the future. But demonetization increase problems in
movement of goods and money and reduce the consumption demand.

Sherline T. I (Dec 2016), objective is to identify the need and significance of Financial Inclusion in
India , to understand the measures taken by the Government of India and RBI for promoting financial
inclusion and to understand the importance of demonetization as a measure of financial inclusion .
According to the results, there is a need to modify the credit and financial services delivery system to
achieve greater results. SMEs industry will face problems in adjusting production due to shortage of
cash flow. Due to demonetization poorer section of society is not able to access financial service from
the sector.

Ruchi (Nov 2016 ), The purpose of this study is to understand the benefits of demonetization, to know
the negative impacts of demonetization, to understand the effect on alternative modes of payments, to
know the effect on economic entities and effect on the prices. According to results, demonetization
will end up the corruption because fake currency has been eliminated from the system and once the
black money is reduced the obstacle in tax collection will be removed and the tax revenue will be
increased. Government can make reduction in tax rates since government can raise more revenue with
lower rates. Corruption will be reduced as there will be no or little black money will remain to bribe.
The usage of digital transaction , E wallets apps , e-banking will definitely increase in demand. Price
level is expected to be lowered due to decrease in demand.

R. Sunita (September 4, 2014), talks about the trend of Indian Rupee and it exchange rate against us
$ due to demonetization and measures can be taken by government . All the facts were from the previous
research paper and the print media. According to author, both domestic and global conditions are
indicating that the downward pressure on Rupee to remain in future and government should take some
measures to bring FDI and create a healthy environment for economic growth.

Shweta Mehta ,Kruti Patel and Krupa Mehta, where the author's objective of the study is to
understand the impact of demonetization on banking sector. According to the author In India trades and
trade related area is still cash based and cannot be digitalized by willing and this is the reality. Many
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people are unaware about how the digital cash will work due to low literacy rate and due to low
infrastructure it will take more time for digital cash to reach each and every area of India.

Dr. Ambalika Sinha, Divya Rai (November 2016) talks about the impact on demonetization on
economy , supply chain management , cash flow and income. According to the author, GDP growth
crash to 5%. Demonetization of 500 and 1000 notes leads economy into cash shortage. For industries
and companies it has been more difficult to pay their employees in cash. There is worst hit on India's
service sector.

Square Patton Boggs (25 December 2016 ) According to squire Patton Boggs , the demonetization
measures will expected to impact automobile industry . Economy will be benefitted from decrease in
black money transaction as it will lead to effective tax collection and increased transparency in cash
transaction. Transparency in economy will improve attractiveness for foreign investors in Indian
economy. Demonetization will be expected to improve the fiscal deficit of India.

HDFC group ,(November 11, 2016)According to the reports of HDFC advisory group,
demonetization has long term benefit for the Indian economy. Removal of major proportion of black
money will added to the finance of the government. Demonetization will have strong implication as the
government would get money to spend without borrowing money from the market. This move is likely
to lead to better tax ratio, raise the Tax to GDP ratio and improved tax collection. This move will impact
the habit of Indian and increased belief of keeping cash in the banks rather than saved at home.

KPMG (26 November 2016) According to the report , macro - level measures need to be taken to
achieve the objectives of demonetization . They some measures to control black money they are -

there should be a limit on cash transaction INR 3 lacks

there should be disclosure of foreign investment to tax department
all purchases of asset should be disclosed to income tax department

Square yards (28 November - 2016) argued that, demonetization will bring out the black money which
was stored in the form of 500 and 1000 notes. Demonetization will affect the terror funding, there will
be cash shortage in real estate. Demonetization makes people to adopt e payment methods like e- wallet.
Demonetization will control the black money which was created through the education system, religious
institutions and cricket betting.

Credit Suisse (22 November 2016) - Demonetization created a J curve effect on the economy.
Economic activities were suffering from cash shortage. There is shortage of new currency in the
economy which is creating disruptions. due demonetization there was decrease in demand of asset ,
90% of the wealth of household were spend on the real estate, so definitely real estate will see a fall.
Demonetization will create a parallel economy

Care Ratings (09 November 2016) demonetization will create a parallel economy in India, a situation
was created that owner will not be in the position to deposit there cash in the same bank account.
Because of demonetization money supply will be affected to an extent so money supply will be reducing
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in the short run. The demand of consumer goods , real estate , and gold and luxury goods will be
affected to an extent .online transaction and alternative mode of payment will definitely see increase in
demand.

Reliance Mutual Fund (20 November 2016) There was an improvement in the fiscal policies of
government as fiscal position of India is going forward because policies are clear positive . Increase in
tax will lead to more revenue generation will create better fiscal policies. Liquidity position of banks
will get a major boost with increase in deposits in the banks. Due demonetization a phase of inflation
is created which will result in worst. Growth is positively impacted due to this step in long term and
short term.

Sandeep Kaur (November 2016), wants to study the impact of demonetization on Indian economy and
society. As per the results, there would be a positive impact on the sectors such as banking and
infrastructure. There would be a negative impact on sectors for consumer durables, luxury items etc.
This move can lead to improved tax compliances, lower inflation, lower corruption etc.

Vedashree Mali (December 2016), discusses about demonetization with its reason and effects on
different sectors in India. As per the research demonetization created some positive and some negative
impact on economy. Demonetization makes people to adopt e payment methods like e- wallet.
Demonetization will control the black money which was created through the education system, religious
institutions and cricket betting.

Dr. Partap and Virender (December 2016), want to highlight the probable consequences of
demonetization on various economic variable and entities. As per the research, there will be no benefit to
the economy. Decrease in black money transaction as it will lead to effective tax collection and
increased transparency in cash transaction. Transparency in economy will improve attractiveness for
foreign investors in Indian economy. Demonetization will be expected to improve the fiscal deficit of
India.

Abhinav and Rishabh (2017), try to explain the consequences of demonetization on Indian economy.
As per the results, there would be a positive impact on the sectors such as banking and infrastructure.
There would be a negative impact on sectors for consumer durables, luxury items etc. This move can
lead to improved tax compliances, lower inflation, lower corruption etc.

Deepak and Bhagyashree(2017), want to highlight the various the facets of demonetization. As per the
research, the good facet is there is a decline in black money, there is an increase in tax collection. The
bad facet is there is a decline in purchases of assets, a parallel economy is created, and there is a phase
of inflation in the economy, a J-shaped curve is created in the economy.

Nikita Gajjar (December 2016), Through this paper, the author wants to determine the present status of
black money in India and its future challenges. It also studies the main reason behind generation of black
money i.e. corruption. The research shows that demonetization led to decrease in the level of black
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money with the holders. In future the opportunities for corruption will be eliminated. As a result we will
be able to see a significant increase in the liquidity of banks.

(C) RESEARCH OBJECTIVE

To study the effect of Demonetization on the economy.

To study the impact of demonetization on black money.
To study the impact of demonetization on the e-commerce Industry.
To study the Challenges for common people due to demonetization.

(D) RESEARCH HYPOTHESIS

Hypothesis-1

H0: There is significant relation between implication of demonetization and black money.

H1: There is no significant relation between implication of demonetization and black money

Hypothesis-2

H0: There is significant relation between demonetization leading to challenges faced by common
people.

H1: There is no relation between demonetization and challenges faced by common people.

(E) RESEARCH METHODOLOGY

The researcher had made use of descriptive research design where by respondents were requested to
answer questions referred to them. Mugenda (1999) recommends the use of descriptive research design
where the problem area of study has been defined and the researcher wants to establish certain facts
about that problem.

The researcher had made the use of primary data and secondary data. Primary data was collected
through self-administered questionnaires. The questionnaires consisted of close ended questions where
respondents were required to tick some questions. The use of Likerts scale questions were used to make
it easier to measure levels of agreement or disagreement on certain variables.

Secondary data was collected through reading Past research papers, case studies, research articles which
helped the researcher in making of literature review. Also expert opinion from guide was taken which
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helped the researcher a lot in framing of research methodology. A sample of 450 was taken from NCR
and southern Eastern region for the accuracy of results. The data was collected and was analyzed by
using SPSS software. To check the Reliability of the data Cronbach Alpha test was applied

Descriptive statistic was done by using Mean, Standard Deviation whereas Inferential Statistic was done
by using measures Correlation, Regression and ANOVA.

(F) DATA ANALYSIS

The respondents demographic profile and frequency analysis, scale measurement, and inferential
analyses related to the objective of the study are discussed at length.

Reliability Statistics
Reliability of the tool for data collection was evaluated through Cronbachs Alpha is
used to derive the level of internal consistency. The Alpha measures internal
consistency by establishing if certain item measures the same construct. Cronbach's
alpha is a measure of internal consistency, that is, how closely related a set of items
are as a group.

Cronbach's Alpha N of Items

.799 33
Table1.1

Table 1.1 shows that all the scales were reliable, having an Alpha above the prescribed threshold of 0.6.

confirmed that the instrument was reliable which therefore paved way for further analysis and

interpretation of other variables.

(a) Bartletts sphericity test and the KMO index (Kaiser-Mayer-Olkin)

While the KMO ranges from 0 to 1, the world-over accepted index is over 0.6. Levene's
test and the BrownForsythe test are alternatives to the Bartlett test that are less sensitive to
departures from normality.

Table 1.2 KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .697

Bartlett's Test of Approx. Chi-Square 17803.213
Sphericity Df 2080
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Sig. .000

Descriptive Findings
1.Response Rate

Table1.3

Questionnaires Frequency Percentage

Returned complete 407 90.44%
Returned incomplete 13 2.88%
Unreturned questionnaire 30 6.66%
Total 450 100%

Frequency Table 1.4

Item Frequency Percent

Gender Male 221 54.3%
Female 186 45.7%

Age below 25 yrs 84 20.6%

25-40 yrs 177 43.5%
40-55 yrs 125 30.7%
Above 55 yrs 21 5.2%

Education Certificate 30 7.4%

Diploma 16 3.9%
Graduate 221 54.3%
Masters 80 19.7%
Doctorate 27 6.6%
Uneducated 23 8.1%

Occupation Retired 9 2.2%

Student 55 13.5%
Homemaker 63 15.5%
Govt. 59 14.5%
Employee 164 40.3%
Private 57 14.0%
Employee
Business

Income Below 5 lakh 161 39.6%

5 - 10 lakh 66 16.2%
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7 -10 lakh 119 29.2%

Above 10 61 15%
lakh

This table 1.4 shows that from the sample collected around 50% of the respondents are lying in the age
group of 25-40 years which are graduate and employed in private sector with an annual income ranging
between 5-10 lakhs.

Mean And Standard Deviation

Table 1.4

Items N Mean Std. Deviation

W1 407 1.36 .683
W2 407 1.56 .918
W3 407 1.52 .862
W4 407 1.66 .989
W5 407 1.41 .727
W6 407 1.29 .508
W7 407 1.50 .797
W8 407 1.71 .843
W9 407 1.40 .642
W10 407 1.44 .730
W11 407 4.55 1.165
W12 407 1.34 .664
W13 407 1.28 .529
W14 407 1.40 .762
W15 407 1.27 .443
W16 407 1.49 .876
W17 407 1.25 .465
W18 407 4.78 .813
W19 407 4.70 .975
Valid N
407
(listwise)
This table shows the mean of various parameters. As we can see the mean lies between 1 and 2.
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Standard Deviation shows the degree of deviation between the mean and the actual mean.

Hypothesis-1

H0: There is significant relation between implication of demonetization and black money.

H1: There is no significant relation between implication of demonetization and black money.

USING CROSS TABS TO SUPPORT HYPOTHESIS

Gender * W2 Crosstabulation
Count
W2
1 2 3 4 5 Total
Gender 1 139 55 7 17 3 221
2 124 42 9 10 1 186
Total 263 97 16 27 4 407
*W2: opinion on wastage of time in the banks is justified to fight black money.
This table shows the relation between gender and W2.
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Gender * W5 Crosstabulation
Count
W5
1 2 3 4 Total
Gender 1 148 55 7 11 221
2 134 42 6 4 186
Total 282 97 13 15 407

*W5: Opinion on wastage of time in banks is justified considering the favourable influence it shall have
on eradicating fake notes.
This shows relation between gender and W5.
Gender * W12 Crosstabulation
Count
W12
1 2 3 5 Total
Gender 1 156 55 5 4 220
2 139 42 3 2 186
Total 295 97 8 6 406
*W12: Opinion on government's move to release Rs.2000 notes will not help fighting corruption.
This shows relation between gender and W12.

Gender * Do you think that black money exist in

India ? Crosstabulation
Count
Do you think that black
money exist in India ?
1 2 Total
Gender 1 220 1 221
2 186 0 186
Total 406 1 407
This shows relation between Genders considering existence of black money.

Gender * Is the Inconvenience of Demonetization

worth the effort of fighting black money
Crosstabulation
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Count
Is the Inconvenience of
Demonetization worth the
effort of fighting black
money
1 2 Total
Gender 1 198 23 221
2 175 11 186
Total 373 34 407

This table shows the relation of gender and inconvenience of demonetization.

USING CORRELATION AND REGRESSION ANALYSIS

Correlations
Education
level W2 W5 W12
Education Pearson
1 .216** .090 .177**
level Correlation
Sig. (2-tailed) .000 .070 .000
N 407 407 407 406
W2 Pearson
.216** 1 .678** .335**
Correlation
Sig. (2-tailed) .000 .000 .000
N 407 407 407 406
W5 Pearson
.090 .678** 1 .471**
Correlation
Sig. (2-tailed) .070 .000 .000
N 407 407 407 406
W12 Pearson
.177** .335** .471** 1
Correlation
Sig. (2-tailed) .000 .000 .000
N 406 406 406 406
**. Correlation is significant at the 0.01 level (2-tailed).

This shows the relation between educational level and W2, W5, W12. This table shows a positive level
of relation between Education level and W2, W5, W12.
 17

USING ANOVA TO PROVE HYPOTHESIS

Age group
ANOVA
Sum of
Squares df Mean Square F Sig.
Do you think that black Between Groups .045 3 .015 6.370 .000
money exist in India ? Within Groups .952 403 .002
Total .998 406
Is the Inconvenience of Between Groups 1.045 3 .348 4.662 .003
Demonetization worth Within Groups 30.115 403 .075
the effort of fighting Total
31.160 406
black money
W2 Between Groups 86.919 3 28.973 45.683 .000
Within Groups 255.587 403 .634
Total 342.506 406
 18

W5 Between Groups 55.844 3 18.615 47.237 .000

Within Groups 158.810 403 .394
Total 214.654 406
W12 Between Groups 40.438 3 13.479 39.172 .000
Within Groups 138.333 402 .344
Total 178.771 405
This table shows the high degree of significance of age groups with various factors asked to respondents
related to black money in India.
occupation

ANOVA
Sum of
Squares df Mean Square F Sig.
Is the Inconvenience of Between Groups 2.133 5 .427 5.894 .000
Demonetization worth Within Groups 29.026 401 .072
the effort of fighting Total
31.160 406
black money
W2 Between Groups 19.517 5 3.903 4.846 .000
Within Groups 322.989 401 .805
Total 342.506 406
W5 Between Groups 28.015 5 5.603 12.038 .000
Within Groups 186.638 401 .465
Total 214.654 406
W12 Between Groups 33.883 5 6.777 18.709 .000
Within Groups 144.888 400 .362
Total 178.771 405
The table shows the high degree of significance with occupation of respondent and various factors
related to black money in India.
 19

ANOVA
Sum of
Squares df Mean Square F Sig.
W2 Between Groups 31.166 5 6.233 8.028 .000
Within Groups 311.340 401 .776
Total 342.506 406
W5 Between Groups 15.066 5 3.013 6.054 .000
Within Groups 199.587 401 .498
Total 214.654 406
W12 Between Groups 14.780 5 2.956 7.210 .000
Within Groups 163.991 400 .410
Total 178.771 405
Do you think that black Between Groups .028 5 .006 2.303 .044
money exist in India ? Within Groups .970 401 .002
Total .998 406

This table shows the high degree of significance between education level of respondents and various
factors related to black money in India.

THE TEST SHOWS THAT WE'LL REJECT HYPOTHESIS H1 AND ACCEPT HO.
 20

HYPOTHESIS-2

H0: There is significant relation between demonetization and challenges faced by common people.

H1: There is no relation between demonetization and challenges faced by common people.

USING CROSS TABS TO SUPPORT HYPOTHESIS

Gender * W1 Crosstabulation
Count
W1
1 2 3 4 5 Total
Gender 1 153 55 5 5 3 221
2 140 42 1 3 0 186
Total 293 97 6 8 3 407
*W1: Time wasted in banks to withdraw money is not fair.
This table shows relation between Gender and W1.

Gender * W9 Crosstabulation
Count
W9
1 2 3 5 Total
Gender 1 140 62 18 1 221
2 134 46 5 1 186
Total 274 108 23 2 407
*W9: Liquidity position of respondent has been seriously affected.
This table shows the relation between Gender and W9.

Gender * W10 Crosstabulation

Count
W10
1 2 3 5 Total
 21

Gender 1 139 56 23 3 221

2 134 40 11 1 186
Total 273 96 34 4 407
*W10: Problems faced by respondent.
This Table shows relation between Gender and W10.
Gender * W11 Crosstabulation
Count
W11
1 2 5 Total
Gender 1 12 20 189 221
2 8 15 163 186
Total 20 35 352 407
*W11: Difficulty in using new currency notes.
This table shows relation between gender and W11.

Gender * W13 Crosstabulation

Count
W13
1 2 3 5 Total
Gender 1 160 55 4 2 221
2 144 42 0 0 186
Total 304 97 4 2 407
*W13: Cost paid for demonetization in form of deaths at bank counters are beneficial in terms of effects
of demonetization.
This table shows the relation between gender and W13.

Gender * W15 Crosstabulation

Count
W15
1 2 Total
Gender 1 159 62 221
2 139 47 186
Total 298 109 407
*W15: The tendency to approach for illegal exchange of old currency notes.
This table shows relation between Gender and W15.
 22

Gender * W16 Crosstabulation

Count
W16
1 2 4 5 Total
Gender 1 144 55 21 1 221
2 132 42 12 0 186
Total 276 97 33 1 407
*W16: Respondents opposing demonetization are against social causes and siding corruption.
This table shows relation between Gender and W16.

Gender * Has the move disrupt your

regular routine? Crosstabulation
Count
Has the move
disrupt your
regular
routine?
1 Total
Gender 1 221 221
2 186 186
Total 407 407

This table shows relation between gender and disruption of regular routine.
Gender * Whom do you think the move has affected
the most in the hierarchical ladder of Indias
economy? Crosstabulation
Count
Whom do you think the
move has affected the most
in the hierarchical ladder of
Indias economy?
2 3 Total
Gender 1 155 66 221
 23

2 141 45 186
Total 296 111 407
This table shows relation between Gender and their opinion towards the most affected group in the
economy.

Gender * Will demonetization affect the most

weeding? Crosstabulation
Count
Will demonetization affect
the most weeding?
1 2 Total
Gender 1 195 26 221
2 178 8 186
Total 373 34 407

This shows a significant relation between Gender and affect on wedding.

Gender * Demonetization affected the market - sales
and production? Crosstabulation
Count
Demonetization affected the
market - sales and
production?
1 2 Total
Gender 1 219 2 221
2 186 0 186
Total 405 2 407

This table shows relation between Gender and affect in the market.

USING CORRELATION AND REGRESSION ANALYSIS

Correlations
W1
Age group W1 W9 W10 W11 W13 W15 6
Age Pearson Correlation 1 .225** .079 .087 .125* .372** .564** .
grou 209*
*
p
 24

Sig. (2-tailed) .000 .112 .079 .012 .000 .000 .000

N 407 407 407 407 407 407 407 407
W1 Pearson Correlation .
.225** 1 .451** .409** .148** .578** .498** 275*
*

Sig. (2-tailed) .000 .000 .000 .003 .000 .000 .000

N 407 407 407 407 407 407 407 407
W9 Pearson Correlation .
.079 .451** 1 .721** .200** .580** .464** 181*
*

Sig. (2-tailed) .112 .000 .000 .000 .000 .000 .000

N 407 407 407 407 407 407 407 407
W10 Pearson Correlation .
.087 .409** .721** 1 .176** .529** .463** 145*
*

Sig. (2-tailed) .079 .000 .000 .000 .000 .000 .003

N 407 407 407 407 407 407 407 407
W11 Pearson Correlation -.27
.125* .148** .200** .176** 1 .205** .150**
3**
Sig. (2-tailed) .012 .003 .000 .000 .000 .002 .000
N 407 407 407 407 407 407 407 407
W13 Pearson Correlation .
.372** .578** .580** .529** .205** 1 .701** 316*
*

Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000

N 407 407 407 407 407 407 407 407
W15 Pearson Correlation .
.564** .498** .464** .463** .150** .701** 1 504*
*

Sig. (2-tailed) .000 .000 .000 .000 .002 .000 .000

N 407 407 407 407 407 407 407 407
** ** ** ** **
W16 Pearson Correlation .209 .275 .181 .145 -.273 .316** .504** 1
Sig. (2-tailed) .000 .000 .000 .003 .000 .000 .000
N 407 407 407 407 407 407 407 407
This table shows relation of age groups with various questions asked to the respondents.
 25

USING ANOVA TO PROVE HYPOTHESIS

ANOVA

Sum of
Squares Df Mean Square F Sig.
W1 Between Groups 33.492 3 11.164 28.869 .000
Within Groups 155.849 403 .387
Total 189.342 406
W9 Between Groups 40.693 3 13.564 43.101 .000
Within Groups 126.826 403 .315
Total 167.518 406
W10 Between Groups 53.848 3 17.949 44.502 .000
Within Groups 162.545 403 .403
Total 216.393 406
W11 Between Groups 125.047 3 41.682 39.445 .000
Within Groups 425.862 403 1.057
Total 550.909 406
W13 Between Groups 45.022 3 15.007 88.157 .000
Within Groups 68.605 403 .170
Total 113.627 406
W15 Between Groups 62.418 3 20.806 482.150 .000
Within Groups 17.390 403 .043
Total 79.808 406
W16 Between Groups 67.239 3 22.413 36.945 .000
Within Groups 244.481 403 .607
Total 311.720 406
Whom do you think the Between Groups 7.594 3 2.531 13.950 .000
move has affected the Within Groups 73.133 403 .181
most in the hierarchical Total
ladder of Indias 80.727 406
economy?
This table shows the level of significance between age groups and various factors asked for gaining
responses.
 26

education

ANOVA
Sum of
Squares Df Mean Square F Sig.
W1 Between Groups31.346 5 6.269 15.912 .000
Within Groups 157.995 401 .394
Total 189.342 406
W9 Between Groups16.575 5 3.315 8.806 .000
Within Groups 150.944 401 .376
Total 167.518 406
W10 Between Groups19.986 5 3.997 8.161 .000
Within Groups 196.407 401 .490
Total 216.393 406
W11 Between Groups103.635 5 20.727 18.583 .000
Within Groups 447.274 401 1.115
Total 550.909 406
W13 Between Groups25.176 5 5.035 22.828 .000
Within Groups 88.450 401 .221
Total 113.627 406
W15 Between Groups20.953 5 4.191 28.551 .000
Within Groups 58.856 401 .147
Total 79.808 406
W16 Between Groups12.270 5 2.454 3.286 .006
Within Groups 299.450 401 .747
Total 311.720 406
Whom do you think the Between Groups 23.645 5 4.729 33.221 .000
move has affected the Within Groups 57.082 401 .142
most in the hierarchical Total
ladder of Indias 80.727 406
economy?
Between Groups 3.282 5 .656 9.442 .000
 27

Will demonetization Within Groups 27.878 401 .070

affect the most Total
31.160 406
weeding?
This table shows level of significance between education level and various parameters.

ANOVA
Sum of
Squares df Mean Square F Sig.
W1 Between Groups 31.187 5 6.237 15.815 .000
Within Groups 158.155 401 .394
Total 189.342 406
W9 Between Groups 33.048 5 6.610 19.711 .000
Within Groups 134.470 401 .335
Total 167.518 406
W10 Between Groups 26.583 5 5.317 11.232 .000
Within Groups 189.810 401 .473
Total 216.393 406
W11 Between Groups 117.996 5 23.599 21.860 .000
Within Groups 432.913 401 1.080
Total 550.909 406
W13 Between Groups 36.881 5 7.376 38.542 .000
Within Groups 76.745 401 .191
Total 113.627 406
W15 Between Groups 38.742 5 7.748 75.660 .000
Within Groups 41.067 401 .102
Total 79.808 406
W16 Between Groups 22.478 5 4.496 6.233 .000
Within Groups 289.242 401 .721
Total 311.720 406
Whom do you think the Between Groups 18.196 5 3.639 23.337 .000
move has affected the Within Groups 62.531 401 .156
most in the hierarchical Total
ladder of Indias 80.727 406
economy?
Will demonetization Between Groups 2.754 5 .551 7.775 .000
affect the most Within Groups 28.406 401 .071
weeding? Total 31.160 406
 28

This shows the level of significance between occupation and various parameters.

ANOVA
Sum of
Squares df Mean Square F Sig.
W1 Between Groups 4.682 3 1.561 3.406 .018
Within Groups 184.660 403 .458
Total 189.342 406
W9 Between Groups 25.301 3 8.434 23.898 .000
Within Groups 142.218 403 .353
Total 167.518 406
W10 Between Groups 31.457 3 10.486 22.850 .000
Within Groups 184.936 403 .459
Total 216.393 406
W11 Between Groups 21.669 3 7.223 5.500 .001
Within Groups 529.240 403 1.313
Total 550.909 406
W13 Between Groups 7.341 3 2.447 9.278 .000
Within Groups 106.286 403 .264
Total 113.627 406
W15 Between Groups 9.389 3 3.130 17.911 .000
Within Groups 70.419 403 .175
Total 79.808 406
Whom do you think the Between Groups 9.700 3 3.233 18.345 .000
move has affected the Within Groups 71.027 403 .176
most in the hierarchical Total
ladder of Indias 80.727 406
economy?
Will demonetization Between Groups 2.257 3 .752 10.489 .000
affect the most Within Groups 28.903 403 .072
weeding? Total 31.160 406
This table shows the level of significance between level of income and various factors.

THE TEST SHOWS THAT WE'LL REJECT HYPOTHESIS H1 AND WILL ACCEPT H1.
 29

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 30

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