A Study On The Impact of Currency Demonetization On Retailers and Daily Waged Workers in Pala Muncipality

A STUDY ON THE IMPACT OF CURRENCY
DEMONETIZATION ON RETAILERS AND DAILY

WAGED WORKERS IN PALA MUNCIPALITY
Dissertation submitted to
THE MAHATMA GANDHI UNIVERSITY
In partial fulfillment of the requirement of the award of the degree of
BACHELOR OF COMMERCE
Submitted By
SHERIN JOSEPH JOHN (Reg. No.140021006025)
TONY BABY (Reg. No.140021006027)
ZACHARIAS AUGUSTINE (Reg. No. 140021006028)
Under the supervision and guidance of
Sri. Binoy Chacko
Assistant Professor
RESEARCH &P.G. DEPARTMENT OF COMMERCE
ST. THOMAS COLLEGE, PALA
MARCH- 2017
i
RESEARCH &P.G. DEPARTMENT OF COMMERCE
ST. THOMAS COLLEGE, PALAI
CERTIFICATE
This is to certify that the project titled “IMPACT OF CURRENCY
DEMONETIZATION ON RETAILERS AND DAILY WAGED WORKERS IN
PALA MUNCIPALITY” is a bonafide work of Sherin Joseph John, Tony Baby,
Zacharias Augustine is completed under my supervision and guidance in partial
fulfillment of the requirement for the award of the Degree of Bachelor of Commerce
in Mahatma Gandhi University, Kottayam. This has not formed the basis for the
award of any other Degree/ Diploma of any University/ Institution. They are permitted
to submit the project.
Counter signed by Guide
Sri. K.V.John Sri. Binoy Chacko

Head of the Department of Commerce Assistant Professor
St. Thomas College, Pala Department of Commerce
Place: Pala
Date:
ii
DECLARATION
We, Sherin Joseph John, Tony Baby and Zacharias Augustine, do hereby declare
that the study entitled “A STUDY ON THE IMPACT OF CURRENCY
DEMONETIZATION ON RETAILERS AND DAILY WAGED WORKERS IN
PALA MUNCIPALITY” has been taken by us in partial fulfillment of the
requirements for the award of Bachelor of Commerce of Mahatma Gandhi University.
We have completed the work under the supervision and guidance of Sri.Binoy Chacko
Assistant Professor, Research and P.G. Department of Commerce, St. Thomas College,
Pala.
We, also declare that, this is genuine work and others or we have not submitted this
work for any other purpose either in this University or in other Universities.
Sherin Joseph John
Tony Baby
Zacharias Augustine
Place: Pala
Date:
iii
ACKNOWLEDGEMENT
We thank god almighty for his kindness and blessing he showered upon us.
It is with immense gratitude that we acknowledge the assistance and encouragement

received from Sri.Binoy Chacko, Faculty guide of the Research and PG Department of
commerce, St. Thomas College, Pala, under whose able guideness this dissertation
work has been completed. We are indebted to him for the valuable suggestions and
advice, which helped us in various phase of this study.
We express our sincere thanks to other esteemed teachers for providing us all the
facilities and encouragement for the successful completion of study.
We would like to thanks our parents, friends and all wishers who helped us to complete
this work.
Sherin Joseph John
Tony Baby
Zacharias Augustine
iv
CONTENT
Chapter Title Page No.

LIST OF TABLES vi
LIST OF GRAPHS x
ABSTRACT xiv
1 INTRODUCTION 2
2 REVIEW OF LITERATURE 9
3 THEORETICAL FRAMEWORK 14
4 DATA ANALYSIS AND 21
INTERPRETATION
5 SUMMARY OF FINDINGS 78
SUGGESTIONS AND
CONCLUSION
BIBLIOGRAPHY
APPENDIX
v
LIST OF TABLES
Table No. Title Page No.

4.1.1 Type of organization 23
4.1.2 Years of service 24
4.1.3 Weekly sales turnover 25
4.1.4 Mode of receiving 27
payment from
customers
4.1.5 Mode of acquiring 28
stock
4.1.6 Mode of payment of 29
salary
4.1.7 Percentage impact of 31
demonetization on
business
4.1.8 Shortage of smaller 32
denomination currency
4.1.9 Impact of shortage of 33
notes on business
4.1.10 Impact of 34
demonetization on
acquiring stock
4.1.11 Impact of 35
demonetization on
salary payments
vi
4.1.12 Banks in which 36
accounts are
maintained
4.1.13 Impact of 37
demonetization on
working hours
4.1.14 Currency shortage 38
during emergencies
4.1.15 Acceptance of digital 39
payments
4.1.16 Switch to digital 40
payments
4.1.17 Increase in banking 41
transaction
4.1.18 Preferred mode of 42
payment
4.1.19 Opinion on complete 43
currency
demonetization
4.1.20A Opinion on currency 44
demonetization
4.1.20B Opinion on vanishing 45
black money,
terrorism, bribe
4.1.20C Opinion on usefulness 46
to ordinary people
4.1.20D Opinion on providing 47
information on digital
vii
payments to digitalize
economy
4.2.1 Type of job 49

4.2.2 Average weekly 50
income
currency
demonetization on
income
4.2.4 Mode of receipt of 53
wages
4.2.5 Other source of income 54
4.2.6 Difficulty in finding 55
job
4.2.8 Impact of currency 57
demonetization on
daily expenses
during emergencies
4.2.10 Bank Account 59
accounts are
maintained
4.2.12 Opening of bank 62
account
viii
4.2.13 Difficulty in 63
exchanging old notes
4.2.14 Impact of 64
demonetization on
working hours
transactions
4.2.16 Knowledge in digital 66
banking
4.2.17 Usage of digital 67
banking
4.2.18 Opinion on receiving 68
wages through bank
currency
demonetization
demonetization
black money,
terrorism, bribe
to ordinary people
more information on
digital payments to
digitalize economy
ix
LIST OF GRAPHS
Graph No. Title Page No.

4.1.1 Type of organization 24
4.1.2 Years of service 25
4.1.3 Weekly sales turnover 26
4.1.4 Mode of receiving 28
payment from
customers
4.1.5 Mode of acquiring 29
stock
4.1.6 Mode of payment of 30
salary

demonetization on
business
4.1.9 Impact of shortage of 34
notes on business
4.1.10 Impact of 35
demonetization on
acquiring stock
4.1.11 Impact of 36
demonetization on
salary payments
x
accounts are
maintained
4.1.13 Impact of 38
demonetization on
working hours
during emergencies
4.1.15 Acceptance of digital 40
payments
4.1.16 Switch to digital 41

payments
transaction
4.1.18 Preferred mode of 43

payment
currency
demonetization
demonetization
black money, terrorism,
bribe
to ordinary people
xi
information to
digitalize economy
4.2.1 Type of job 50
4.2.2 Average weekly 51
income
currency
demonetization on
income
4.2.4 Mode of receipt of 54
wages
4.2.5 Other source of income 55
4.2.6 Difficulty in finding job 56

4.2.8 Impact of currency 58
demonetization on
daily expenses
during emergencies
4.2.10 Bank Account 60
accounts are
maintained
xii
4.2.12 Opening of bank 62
account
4.2.13 Difficulty in 63
exchanging old notes
4.2.14 Impact of 64
demonetization on
working hours
transactions
4.2.16 Knowledge in digital 66
banking
4.2.17 Usage of digital 67
banking
4.2.18 Opinion on receiving 68
wages through bank
currency
demonetization
demonetization
black money, terrorism,
bribe
to ordinary people
more information to
digitalize economy
xiii
ABSTRACT
This study is conducted to find out the impact of currency demonetization on retailers
and daily waged workers in Pala municipality, Kottayam district, Kerala. The major
objectives of the study are to identify whether the currency demonetization policy
affected the sale of retailers, to check whether the traders implemented electronic
payment system, to know whether the daily waged workers faced any work problems
after currency demonetization and to check whether the workers are familiar to banking
transactions and digital payments. The sample of the study is 50 daily waged workers
and 50 retailers in Pala municipality. Convenience sampling method was used for the
study. Diagrams, graphs and tables are used for analyzing and interpreting the data.
SPSS software is used to analyze data.
The major findings of the study are most of the retailers do not have the facility to
accept digital payments. The retailers opined that currency demonetization have
affected their business. Most of the daily waged workers faced difficulty in finding jobs
after currency demonetization and they are not aware of digital banking transactions.
The main suggestions of the study are that Government should have adopted this
currency demonetization after issuing enough of smaller denomination currencies and
awareness should be given to retailers and daily waged workers on digital payments
and its benefits. The study is concluded by stating that currency demonetization was a
brilliant step and it does not have a large impact on ordinary people, but it created
difficulties to people due to inefficiency in its implementation.
xiv
CHAPTER 1
INTRODUCTION
1
1.1 INTRODUCTION
Demonetization means to the suspension of current currency units and reinstate those
currency units with new currency units. It means legal tender is declared invalid. The
objective of currency demonetization was to curb the hazard of black money, black
market and fake notes by limiting the amount of cash available in the system.
Demonetization is usually done whenever there is a transform of national currency;
reinstating the old unit with a new one. Such a step, for example, was taken when the
European Monetary Union nations decided to assume Euro as their currency.
Zimbabwe, Fiji, Singapore, Philippines, Soviet Union, Australia, North Korea, Ghana,
Nigeria and Myanmar were other countries to have opted for currency demonetization.
The Govt. of India had implemented currency demonetization earlier also. The highest
denomination notes ever printed by the RBI was the Rs.10000 note in 1938 and again
in 1954. But these notes were demonetized in Jan 1946 and again in Jan 1978. But it
does not have much impact on the Indian economy.
On Nov 8, when the whole world was waiting for the result of US presidential elections,
prime minister Narendra Modi came out with his master stroke on corruption,
counterfeit currency, terrorism and black money by announcing demonetization and
ceasing Rs.500 and Rs.1000 notes as part of legal tender in India. The RBI introduced
new redesigned series of Rs.500 banknotes in addition to a new denomination of
Rs.2000 banknote, which is in circulation since November 10,2016. The new
redesigned series is also expected to be introduced to the bank note denominations of
Rs.1000, Rs.100 and Rs.50 in the coming months.
There is a background to the current decision of demonetization of 500 and 1000 rupee
notes. The government had taken few steps in this direction much before its November
8, 2016 announcement.
As a first step the government had urged people to create bank accounts under Jan Dhan
Yojana. They were asked to deposit all the money in their Jan Dhan account and do
their future transactions through banking methods only. The second step that the
2
government initiated was a tax declaration of the income and had given October 30,
2016 deadline for this purpose. Through this method, the government was able to mop
up a huge amount of undeclared income. However, there were many still hoarded the
black money, and in order to tackle them; the government announced the
demonetization of 500 and 1000 currency notes.
However, through present demonetization policy, the common public are undoubtedly
facing hardships since more than 85 percent of currency in circulation has been
rendered illegal in one single stroke. The demonetization is causing difficulties for the
public at present, but will have positive long lasting effects.
When PM Modi announced that rupees with denomination of 500 and 1000 would cease
to be legal tender from 9th of Nov., the whole country was stunned. People started
counting the trash they had accumulated for years legally or illegally. People could get
only Rs.4000 of old denomination exchanged with the new one. Big queues before the
banks and ATMs became the order of the day. It has deeply affected business. Due to
the cash crunch, the entire economy has been made to come to a standstill. Many poor
daily waged workers are left with no jobs and their income has stopped because the
employers are unable to pay their daily wage.
We are studying the impact of demonetization on retailers and daily waged workers in
Pala municipality to know, how demonetization affected the life of common people.
1.2 STATEMENT OF THE PROBLEM
The government says that through demonetization policy more people could be brought
to the dominant economic grid, so that they could be more readily regulated and taxed.
Also it will help to bring the interest rates down. People can exchange their old
currencies for new currencies. However, the banks did not have enough of the newly
designed bank notes on hand to distribute in exchange for the canceled notes and there
simply wasn’t an adequate supply of smaller denominations in circulation to run the
cash economy. The poor people are mainly affected by it. The poor and the low middle
classes rely on cash for their daily activities. Traders are not getting enough sale and
3
daily waged workers can’t find employers with the cash to pay them. There will be
severe impact on those producers whose daily bread and butter depend upon their daily
sale. Most of these people do not have sufficient savings to sustain their daily lives.
The most number of poor people did not have a bank account. Most of them keep their
savings in hand. As a result, when the currency was demonetized they faced a lot of
troubles. They were able to exchange only Rs.2000. As a result, they were not able to
meet their needs. They have to stand in long ques to get their currency exchanged. So
they even lost their daily jobs. They may not have the knowledge to make online
payments. Also workers with bank accounts have accounts in cooperative banks. From
these cooperative banks they were not able to withdraw money. So they are not able to
meet their emergency needs like hospital cases, marriages etc.
So through this study we try to find the problems faced by retailers and daily waged
workers due to the demonetization policy. The new notes design prevents them from
fitting into existing ATMs and their denomination- Rs.2000 rupees is too high to be
useful for most people. The govt. needs to print enough number of small denomination
notes. ATMs should be made properly functioned. Those who did not have bank
account should be provided and also proper education on electronic transactions should
be given to ordinary people and traders.
1.3 SCOPE OF THE STUDY
The study shows the impacts of demonetization of currency on retailers and daily waged
workers in Pala municipality, Kottayam District, Kerala. For that we are conducting a
study among the daily waged workers and small retailers to know how it affected them.
4
1.4 OBJECTIVES OF THE STUDY
 To identify whether the currency demonetization policy affected the sale of

traders.
 To know whether the traders faced any problems during payments.
 To check whether the traders implemented electronic payment system.
 To know whether the daily waged workers faced any work problems after
currency demonetization.
 To check whether daily waged workers are able to meet their emergency needs.
 To check whether the workers are familiar to banking transactions and digital
payments.
 To determine whether there is any relation between weekly sales turnover of
retailer and percentage impact of currency demonetization on business
 To determine whether there is any relation between average weekly income of
daily waged worker and percentage impact of demonetization on income
 To determine whether there is any relation between knowledge in digital
banking and opinion in receiving wages through banks
1.5 HYPOTHESIS OF THE STUDY
1. H0: There is no relation between weekly sales turnover of retailer and percentage
impact of currency demonetization on business
H1: There is significant relation between weekly sales turnover of retailer and
percentage impact of currency demonetization on business
2. H0: There is no relation between average weekly income of daily waged worker
and percentage impact of demonetization on income
H1: There is significant relation between average weekly income of daily waged
worker and percentage impact of demonetization on income
3. H0: There is no relation between knowledge in digital banking and opinion in
receiving wages through banks
5
H1: There is significant relation between knowledge in digital banking and
opinion in receiving wages through banks
1.6 RATIONALE OF THE STUDY
The government introduced demonetization policy as a move to prevent black money

and counterfeit currency. It will help to fight against terrorism. Also it stops money
laundering activities and mitigates corruption. As part of the policy, govt. introduced
newRs.2000 and Rs.500 notes. They put limits on the amount that could be withdrawn.
This was to control currency flow to prevent fraud. As a result, people have only small
amount of money in hand. Otherwise they were to use internet banking and other digital
payments. This was very rarely assessable to poor people. The currency shortage
affected small traders, where transactions are mainly through cash. The government
asked a 50 days’ time to solve the currency demonetization problem. Even after that
time, there exist some problems. The limits on currency withdrawals restricted people
from buying things and making payments in cash, which was the common mode of
payment.
Government says that this policy is really helpful to people. They adopted this policy
as a step towards to digitalize India, to make every transaction digitally. The most
affected category of this policy is poor rural people, who are mainly daily waged
workers. Because they got their payments daily in small denominations. Due to the
demonetization policy, they were hardly affected because they were not able to get
payments and they were not able to meet their daily needs. Also the small retailers, who
has not accepted digital payments were also badly affected by the policy. They were
not able to sell the goods because they did not have enough small denomination notes
to give in return for payments in large denominations. As a result, their sales fall down.
Even though the policy is for a better future, it affected the life of common people.
The government urges everyone to take bank account and to move to digital payments.
So this study tries to understand whether people moved towards digital payments by
6
making transactions digitally. Through this study we try to understand how the
implementation of demonetization policy affected the lives of the daily waged workers
and small retailers. Also to check whether the people are capable of doing the
transactions digitally and to check whether they are able to meet their needs after the
implementation of demonetization policy.
1.7 REFERENCE PERIOD
The study is conducted between the period starting from November to February.
1.8 RESEARCH METHODOLOGY
This present study is both descriptive and analytical in nature and is based on primary
and secondary data. Primary data forms the major part, which was collected through
schedules for daily waged workers and small retailers separately. Discussions were also
conducted with them. Secondary data were collected through newspapers, e-journals,
books, various websites etc.
The sample of the study is the 50 daily waged workers and 50retailers in Pala
municipality. Convenience sampling was used to select respondents. Diagrams, graphs
and tables are used for analyzing and interpreting the data. This helps to reach at
accurate conclusion. SPSS is used to analyze data.
1.10 CHAPTER SCHEME
The researcher presents the details of the study in 5 distinctive chapters:
CHAPTER1: This chapter includes introduction to topic, statement of problem, scope

of study, objectives of study, research methodology and rationale of the study.
CHAPTER 2: This chapter is exclusively for providing abstracts of some previous and
literary works closely related to currency demonetization
CHAPTER3: it deals with theoretical background for the study, which contains the
brief description about meaning of demonetization, history, objectives, benefits, short
and long term impacts of demonetization and loopholes in demonetization.
7
CHAPTER4: It deals with the analysis and interpretation of data and its presentation.
CHAPTER5: This chapter depicts the findings, suggestions and conclusions of the
study.
8
CHAPTER 2
REVIEW OF LITERATURE
9
Anil Ramdurg (2016) in his work, “DEMONETIZATION: REDEFINING INDIAN
ECONOMY” an attempt has been made to assess how demonetization can be used to
eradicate parallel economy. Demonetization is one of the best steps initiated by
government in addressing various issues like black money, counterfeit currency,
corruption, terrorism etc. It tells about the history of demonetization in India and around
the world. Lesson from historically demonetization guides us how to redefine economy
by overcoming the earlier causes for failure. Demonetization may have some short term
difficulties, but it is overcomed by its long term benefits. Also it tells the measures
needed to sustain demonetization benefits.
M.Chelladurai. (2016) In his study, “DEMONETIZATION OF INDIAN

CURRENCY AND ITS IMPACT ON BUSINESS ENVIRONMENT “,
demonetization is a rare, bold economic policy decision in the history of India. It was
planned earlier by RBI and government and announced at a sudden. The objective of
this demonetization was to block black money, counterfeit currency and funding for
terrorism. Many of them analyze that this will engender a market fall in the use of cash
transactions in India and thus pave the way for the transition to a cashless economy. It
explains the impact of demonetization on various segments.
Geeta Rani (2016) conducted a study titled “EFFECTS OF DEMONETIZATION ON

RETAIL OUTLETS”. The main objectives of the study are to know the demonetization
post effects on retailers and consumers and to also know the trends and behavior change
in consumers and shopkeepers buying etc. This study is analytical in nature. The
research project is mainly based on primary data. The sample size was 50 shopkeepers
in a town of 1.25 lakhs population. The questionnaire survey was conducted on selected
shopkeepers based on convenience sampling method. The study found that, the sales
was decreased at 50% during the period. The shopkeepers started new mode of
payment, such as, pay tm, credit card, debit card, cheque etc. The wholesalers and
retailers extend the credit span of time. The study also revealed that most affected retail
categories are mobile phone, pc, luxury goods etc.
10
Porinita Banerjee et.al (2017) conducted a study titled “A STUDY ON IMPACT OF
DEMONETIZATION ON E-COMMERCE INDUSTRY”. The major objective of the
study was to analyze the frequency of customer buying product through online before
and after demonetization and analyze the impact of demonetization on consumer’s
mode of payment method while buying products through online shopping. In this study
data collected from both primary and secondary sources. Primary data has been
collected directly from the consumers by communicating with them through interview
and observation method. The secondary data was collected from newspapers, books,
magazines, internet etc. The information was collected through structured questionnaire
consisting of 15 questions a total of 100 respondents were interviewed during the
survey. The study was conducted in the Pune city. The tools used for this study are
percentage table, bar diagram, pie diagram etc. this study found that: pre
demonetization the frequency of shopping through retail shop was 48% and consumer
used to buy less products through online shopping. 43% of the respondents used to
adopt cash on delivery facility during the pre-demonetization period. But in post
demonetization cash on delivery option for making payment has reduced to 2% and
consumers started using debit card has increased from 14% to 43%. It was also found
that the frequency of online shopping also increased during the post demonetization
period.
Partap Singh (2016) conducted a study titled “IMPACT OF DEMONETIZATION

ON INDIAN ECONOMY”. The main object of this study is to known about the impact
of demonetization in various countries in the past years and to analyze the current
immediate impact of demonetization on Indian economy. The study based on secondary
data. Bar diagram, graph and percentile method has been used to analyze the data. This
study found that luxury goods market, real estate, etc. are the most negatively affected
categories on that date. This study also found the positive side, there is likely to a reset
of spending patterns as this move represents indirectly a significant push towards a cash
less economy.
11
Deepa Krishnan (2017) conducted a study titled “EFFECTS OF
DEMONETIZATION: EVIDENCE FROM 28 SLUM NEIGHBORHOODS IN
MUMBAI”. The major objective of the study was to examine the immediate and short‐
term impact of the November 8, 2016, demonetization decision by the Indian
government. This study is mainly based on primary data. The sample size was 214
families living in 28 slums of Mumbai. The questionnaire survey was conducted among
selected families in several slum neighbor hoods of Mumbai based on convenience
sampling method. The survey elicits changes in families’ income, expenditure, and
savings following the policy announcement as well as possible longer‐run effects and
a subjective assessment of the policy at the beginning of December 2016.The study
found that, the policy led to a drop in income, with an average drop in income during
the month of November of about 10%of families’ monthly income. The study also
revealed that the majority of respondents (56%) view the policy overall as positive,
including the majority of those that experienced some loss of income in November.
Ashish Kumar Tripathi (2016) conducted a study entitled “DEMONETIZATION

CHALLENGES FOR RURAL INDIA”. The main objectives of the study are to find
out the challenges for a common person of rural India and the challenges for farmers,
who have no money to buy crops and the challenges for the customers of RRBs due to
the demonetization policy. He concluded that demonetization was good, but our
financial system was not ready for the change. There was not enough of new notes for
giving to people. As a result, laymen or the common person including farmers suffers.
Sandeep Kaur (2016) conducted a study titled “DEMONETIZATION AND ITS IMPACTS
IN INDIA”. The major objective of the study was to analyze the impact of
demonetization on 8th November 2016 by the present government on Indian economy
and system. The study based on secondary data. The data has been collected from
various published sources like report, magazines, journals, newspapers etc… This study
revealed the impact of demonetization in different sectors like Real estate, Election,
gold/silver and Jewellery, GDP, Interest rates etc… This study found that
demonetization policy would be positive for sectors like banking and infrastructure in
12
the medium to long term. This study also revealed that it would improve tax
compliance, better fiscal balance, lower inflation, lower corruption etc… This study
also found that it would be negative for sectors like consumer durables, luxury items,
Real estate and allied sectors in the near to medium term.
13
CHAPTER 3
THEORETICAL FRAMEWORK
14
3.1 DEMONETIZATION
3.1.1 MEANING
The dictionary meaning of DEMONETIZE is “To deprive (a metal) of its capacity as a

monetary standard” or “To withdraw from use as currency” So, demonetization is the
act of stripping a currency unit of its status as legal tender. It is the act or process of
removing the legal status of currency unit.
3.1.2 HISTORY
The sudden move to demonetize Rs.500 and Rs.1000 currency notes is not new.
Rs.1000 and higher denomination notes were first demonetized in January 1946 and
again in 1978.The highest denomination note ever printed by the Reserve Bank of India
was the Rs.10000 note in 1938 and again in 1954. But these notes were demonetized in
January 1946 and again in January 1978
3.1.3 OBJECTIVES
The government’s stated objective behind the demonetization policy are as follows;
first, it is an attempt to make India corruption free. Second it is done to curb black
money, third to control escalating price rise, fourth to stop funds flow to illegal activity,
fifth to make people accountable for every rupee they possess and pay income tax
return. Finally, it is an attempt to make a cashless society and create a digital India.
3.1.4 BENEFITS
One of the biggest benefits of this move is that it is going to drastically affect the corrupt
practices. People who are holding black money in cash will not be able to exchange
much as they would be in a fear of getting penalized and prosecuted by the authorities.
Enemies of the country which are involved in counterfeit currency and terrorism will
not be able to continue it further for quite some time at least. The smuggling of arms
and dealing with the terrorist will not sustain further as all of the money will be on
record now.
15
Secondly, the banking system will improve as it will slowly head towards a cashless
society. Cashless society will increase credit access and financial inclusion. The
existing white money of people will be known to the government and it will remain
with banks so that it can be put on loan, and interest can be generated from it (though
interest rates would fall) with a corresponding fall in Inflation. Further Banking System
will get a boost, as more than Rs.7-8 lakh crore base money (new legal money) will
enter the system. However, it needs to be seen how much money actually remains in
the system, once the cash withdrawal limits are eased.
Thirdly, it will reduce the risk and cost of cash handling as soft money is safer than
hard money. It will also reduce government liability. Since every note is a liability for
the government, the old currency will become worthless for those people, who choose
not to disclose their income. Thus, this will extinguish government's liability to that
extent. It is expected approximately Rs.5 lakh crore may come to the government in the
form of extinguished RBI liability, taxes and penalties. This amount is enough to take
care of India's entire fiscal deficit for one year or more. It will also reduce tax avoidance.
Whatever money will be deposited or exchanged, authorities will keep a track of it and
they will be extra cautious in this period. Dealing in this period in sectors like jewellery
and real estate will be on radar and those entering into Loan transactions may also
undergo tax scrutiny. Search and Seizure activities of the IT Department will also rise
to curb such malpractices. Limits have already been prescribed for reporting to the IT
Department those bank accounts in which excess cash deposits are being made in this
50-day window (Rs.2.5 lakh in case of individuals and Rs.12.5 lakh in case of firms).
Importantly, in the longer run, tax and interest rates on loans are expected to come down
as higher income tax collections arising from better compliance would offer scope to
reduce rates over the long term. This, in turn, will drive up disposable income. This can
give a positive impact on consumption demand in long term.
The sudden stop in the availability of currency has led to a liquidity shock to the people
in the nation. Lack in currency of Rs.500 and Rs.1000 has disturbed economic activities
16
such as consumption, investment, production, employment etc. A number of short term
and long terms impacts can be seen on the Indian economy.
3.1.4.1Short-term impacts
 GDP formation will be effected with the reduction in consumption demand.

Consumption ↓→ Production ↓→ Employment ↓→ Growth ↓→ Tax revenue ↓
 Certain sections of the society namely agriculture sector, small traders,
households, SME’s, daily wage earners etc. will face short term disruptions due
to absence of liquid cash.
 Money supply will reduce in the short-run until the new 500Rs. & 2000Rs. gets
widely circulated in the market.
 Negative impact on disposable income and the consumption patterns of the
people is expected.
 Less currency circulation will reduce inflation.
 Short term recession in sectors like real-estate, construction material, textile,
handicrafts etc.
 Its impact will be seen on farmers as this is the harvest time and farmers
generally deal in cash.
 Rate of capital formation growth will go down as no investments will take place.
3.1.4.2Long-term impacts
 Government revenue will boost up as more earnings would be declared. The

unbanked people will move to banking like Jan-dhan contributing towards
government’s efforts of financial inclusion.
 Demonetization will set accountability in motion as service/sales tax is not paid
by people like local photographers, tailors etc. and thus their income goes
unaccounted.
 Collection of higher taxes will help in nation building like development of
roads, infrastructure, transportation and many others.
17
 Increase in nation developmental projects will demand more labor and other
skilled manpower which will give rise to employment opportunities.
 It will bring more business in taxation i.e. GST benefits.
 Cash in system will boost educational loans and business loans thus bringing
more opportunities.
 It will lead to better business environment, less corruption and transparency.
 Substantial increase in the demand of Digital transactions system, E-wallets,
usage of plastic money, online transactions using E-banking etc.
 Gold imports will be reduced because of the investments in gold by people as
an alternative to cash deposit in the bank.
3.1.5 LOOPHOLES IN DEMONETIZATION:
Despite the demonetization and constant surveillance of the Income Tax department,
money hoarders are still doing everything they can to save their losses. Some of the
methods through which black money hoarders are converting the money are:
Temples:
The government has already declared that sums in temple handis will not come under
the tax scanner. Thus, people started donating their black money to temples, and the
management returned the amount in new notes, after taking their commission.
Poor People:
As per the new rule, poor people can deposit up to 2.5 lakh and not be questioned. Thus,
black money hoarders have turned to their staff and relatives to deposit the money and
withdraw it immediately after that. The money, in new notes, will be returned to the
hoarders after the staff or relatives have kept some for themselves.
Zero Interest Loans:
Some lucrative businesses have started offering interest-free loans to the poor. A good
thing right? Apparently not. This is just another way for them to convert their black
money into white.
18
Jan Dhan Account Holders:
Jan Dhan accounts have seen a surge their deposits since demonetization. Whether it’s
because of people wanting to deposit their old money or black money is being
laundered, is an unanswered question.
Bank Note Mafia:
As with all new rules, there are newer scams and black markets that have cropped up.
A new black market that exchanges your old notes with Rs.100 notes for a deducted
commission has sprung up. The irony is obvious: A black market scam to help people
save their black money.
Paying Advance Salaries:
For some workers and employees, Diwali came early. With industries paying
advance salaries to employees in cash, it is an easy method of getting rid of old notes.
Some companies paid the workers full six months’ advance salary in old notes, while
others were cautious and paid only three months’ salary. Each of them was careful
enough to stay under the 2.5 lakh umbrella.
Buying Gold:
Between the time of the announcement of demonetization and the time it came into
effect, black money hoarders stocked up on gold. They rushed into the jewellery shops
and made the most of the 4 hours. Thus, gold prices surged after the demonetization!
Cancelling Train Tickets:
Until 14 November, old notes were accepted at train stations to book tickets. The wit
of black money hoarders must be admired. Most of them booked expensive tickets
during this time and then cancelled them. Refunds were given in new notes, with a
small cancellation fee. Smart work; defeating the whole purpose of demonetization in
a snap!
Using Farmers:
19
Agriculture income is not taxed. Hence, farmers are easy fodder for people to convert
their black money into white. The farmer as well as a person with black money
benefitted together!
Donations to Political Parties:
Political parties can collect donations from people under Rs. 20,000. By saying that
these donations were collected before demonetization, it’s easy for the parties to
exchange their money before December 30th.
20
CHAPTER 4
ANALYSIS AND
INTERPRETATION
21
ANALYSIS AND INTERPRETATION
This chapter is an attempt to make a detail analysis of the various aspects relating to
Impact of currency demonetization on retailers and daily waged workers in Pala
municipality. Primary data is collected. Convenience sampling method is used to
collect data from 50 retailers and 50 daily waged workers in Pala municipality.
Interview schedules and questionnaires were administered to collect data from the
respondents.
It is an attempt to make a detailed analysis of the data collected from the 100
respondents about the Impact of currency demonetization on retailers and daily waged
workers in Pala municipality. The data is analyzed with the help of SPSS software. The
result of the same are reported in tables and diagrams for better understanding and
attractive presentation of output.
The whole analysis is divided into 2 parts. In the first part, the responses of 50 retailers
in Pala municipality is analyzed. In the second part, the responses of 50 daily waged
workers on impact of currency demonetization is analyzed and a clear presentation of
their views are made there.
22
PART 1
RETAILERS
TABLE 4.1.1
TYPE OF ORGANIZATION
Type of Organization
Count Table Total N %
Grocery 7 14.0%
Bakery 10 20.0%
Stationary 11 22.0%
Textiles 8 16.0%
Other 14 28.0%
Total 50 100.0%
SOURCE: PRIMARY DATA
TABLE 4.1.1 shows the different types of organization in which the study is
conducted. Out of the 50 retail shops sampled, 14 (22%) are stationary, 10(20%) are
bakery ,7(14%) are grocery ,8(16%) are textiles and remaining 14(28%) belong to
other types of organization. This information is represented in the following graph
23
GRAPH 4.1.1
TYPE OF ORGANIZATION
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Grocery Bakery Stationary Textiles Other
Series1 14.00% 20.00% 22.00% 16.00% 28.00%
Series2
Table 4.1.2
YEARS OF SERVICE
Years of Service Count Table Total N %
0-2 10 20.0%
2-5 11 22.0%
5-10 9 18.0%
>10 20 40.0%
Total 50 100.0%
SOURCE: PRIMARYDATA
TABLE 4.1.2 shows the years of service of the organizations. 20(40%) shops have
more than 10 years of service. 11(22%) shops are between 2-5 years. About 10(20%)
has less than 2 years’ service and 9(18%) are in operation between 5-10 years. The
following graph depicts this information.
24
GRAPH 4.1.2
YEARS OF SERVICE
45%
40%
35%
30%
Axis Title
25%
20%
15%
10%
5%
0%
0-2 YEARS 2-5 YEARS 5-10YEARS ABOVE 10 YEARS
20% 22% 18% 40%
TABLE 4.1.3
WEEKLY SALES TURNOVER
Weekly Sales
Turnover Count Table Total N %
0-15000 11 22.0%
15001-30000 17 34.0%
30001-45000 6 12.0%
45001-60000 8 16.0%
60001-75000 5 10.0%
75001-90000 1 2.0%
>90000 2 4.0%
Total 50 100.0%
25
TABLE 4.1.3 shows the weekly sales turnover. 17(34%) retailers have a weekly sales
turnover between RS.15001-30000. 11(22%) shops have turnover less than RS.15000.
8(16%) are between RS.45001-60000. 6(12%) shops are between RS.30001-45000,
5(10%) are between 60001-75000 and the remaining 3(6%) are above RS.75000. This
table shows that 28(56%) shops have a weekly turnover less than 30000. It is shown
in the following graph.
GRAPH 4.1.3
WEEKLY SALES TURNOVER

40.00%
35.00%
30.00%
25.00%
Axis Title
20.00%
15.00%
10.00%
5.00%
0.00%
15001- 30001- 45001- 60001- 75001-
0-15000 >90000
30000 45000 60000 75000 90000
22.00% 34.00% 12.00% 16.00% 10.00% 2.00% 4.00%
26
Table 4.1.4
MODE OF RECEIVING PAYMENT FROM CUSTOMERS
Table
Mode of Receiving Payments Count Responses %
Payment through cash 50 100%
Payment through card 15 30%
Payment through fund

0 .0%
transfer
Payment through other ways 0 .0%
TABLE 4.1.4 shows the mode of receiving payment from customers. 100% of
retailers receive payment from customers through cash and 30% receives payment
from customers through card. No one receives payment through fund transfer. This
shows that most of retailers prefers cash payments. This information is depicted in the
following graph.
27
GRAPH 4.1.4
MODE OF RECEIVING PAYMENT FROM

CUSTOMERS
100%
90%
80%
70%
Axis Title
60%
50%
40%
30%
20%
10%
0%
Payment Payment Payment Payment
through cash through card through fund through other
transfer ways
Series1 100% 30% 0.00% 0.00%
TABLE 4.1.5
MODE OF ACQURING STOCK
Mode of Acquiring Stock Table

Count Responses %
Acquiring stock by cash 44 88.0%
Acquiring stock by card 2 4.0%
Acquiring stock by fund

14 28.0%
transfer
Acquiring stock by other

0 .0%
ways
TABLE 4.1.5 represents the mode of acquiring stock. 88% of retailers acquire stock
by cash and 28% acquire stock through fund transfer and 4% acquire stock by card. It
28
shows that most of the retailers acquire stock by cash. It is shown in the following
graph.
GRAPH 4.1.5
MODE OF ACQURING STOCK
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Acquiring Acquiring Acquiring Acquiring
stock by cash stock by card stock by fund stock by other
transfer ways
Series1 88.00% 4.00% 28.00% 0.00%
TABLE4.1.6
MODE OF PAYMENT OF SALARY
Mode of Payment of Salary Table

Count Responses %
Payment of salary to staff by cash 36 72.0%
Payment of salary to staff by card 0 .0%
Payment of salary to staff by fund transfer 5 10.0%
Payment of salary to staff by other ways 0 .0%
29
TABLE 4.1.6 shows the mode of payment of salary to staff. Out of 50 retailers, only
38 of them have staff. Among the 38 organizations, 94% make salary payment to staff
by cash and 13% make payment to staff by fund transfer. Majority make salary payment
by cash. The graphical representation of this information is shown in the following
graph.
GRAPH4.1.6
MODE OF PAYMENT OF SALARY
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Payment of Payment of Payment of Payment of
salary to staff salary to staff salary to staff salary to staff
by cash by card by fund by other ways
transfer
Series1 72.00% 0.00% 10.00% 0.00%
30
Table 4.1.7
PERCENTAGE IMPACT OF DEMONETIZATION ON BUSINESS
Percentage Impact of Demonetization on

Business Count Table Total N %
0-10 1 2.0%
11-20 4 8.0%
21-30 1 2.0%
31-40 6 12.0%
41-50 9 18.0%
51-60 7 14.0%
61-70 7 14.0%
71-80 4 8.0%
81-90 6 12.0%
91-100 5 10.0%
Total 50 100.0%
TABLE 4.1.7 shows the percentage impact of demonetization on business. 9(18%) are
affected up to 41-50 % and 7 of them says that they are affected by 51-60% and 61-
70% respectively. 6 of them opined that they are affected by 81-90% and 31-40%
respectively. 5 of retailers opined that they are affected by 91-100% and 4 respondents
each says that they are affected by 71-80% and 11-20% respectively. And 1 each opined
that they are affected 21-30% and 0-10% respectively. About 18(36%) respondents are
affected by 51-80%. The graphical representation is given below.
31
GRAPH 4.1.7
PERCENTAGE IMPACT OF
DEMONETIZATION ON BUSINESS
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
0-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-
100
2.00% 8.00% 2.00% 12.00% 18.00% 14.00% 14.00% 8.00% 12.00% 10.00%
Table 4.1.8
SHORTAGE OF SMALLER DENOMINATION CURRENCIES
Shortage of Smaller Denomination Currencies Count Table Total N %
Yes 45 90.0%
No 5 10.0%
Total 50 100.0%
TABLE 4.1.8 represents the shortage of smaller denomination currency. 45(90%)

retailers opined that they faced shortage of smaller denomination currency after
demonetization and 5(10%) opined that they did not faced shortage of smaller
denomination currencies. This information is shown in the following diagram.
32
GRAPH 4.1.8
SHORTAGE OF SMALLER DENOMINATION

CURRENCY
No
10%
Yes
90%
TABLE 4.1.9
IMPACT OF SHORTAGE OF NOTES ON BUSINESS
Impact of shortage of notes on

business Count Table Total N %
Yes 45 90.0%
No 5 10.0%
Total 50 100.0%
TABLE 4.1.9 shows the impact of shortage of smaller denomination currencies on

business. 45(90%) retailers say that shortage of smaller denominated notes badly
affected their business and 5(10%) said that shortage of smaller denominated notes
did not affected their business. This information is depicted in the following diagram.
33
GRAPH: 4.1.9
IMPACT OF SHORTAGE OF NOTES ON

BUSINESS
No
10%
Yes
90%
TABLE 4.1.10
IMPACT OF DEMONETIZATION ON ACQURING STOCK
Impact on acquiring stock Count Table Total N %
Yes 42 84.0%
No 8 16.0%
Total 50 100.0%
TABLE 4.1.10 shows the impact of demonetization on acquiring stock. 42(84%)

retailers opined that demonetization made difficulty in acquiring stock and 8(16%)
opined that demonetization does not made any difficulty in acquiring stock. The
following graph shows the impact of demonetization on acquiring stock.
34
GRAPH 4.1.10
IMPACT OF DEMONETIZATION ON
ACQURING STOCK
No
16%
Yes
84%
TABLE 4.1.11
IMPACT OF DEMONETIZATION ON SALARY PAYMENT
Impact on salary payment Count Table Total N %
Yes 28 56.0%
No 22 44.0%
Total 50 100.0%
TABLE 4.1.11 shows the impact of demonetization on salary payments to the staff.
28(56%) says that demonetization made difficulty in salary payments to their staff and
22(44%) of retailers says that demonetization do not made any difficulty in making
salary payments to their staff. It is represented in the following diagram.
35
GRAPH 4.1.11
IMPACT OF DEMONETIZATION ON SALARY

PAYMENT
No
44%
Yes
56%
SOURCE PRIMARY DATA
TABLE 4.1.12
BANKS IN WHICH ACCOUNTS ARE MAINTAINED
Banks in which accounts are maintained Table

Count Responses %
Bank account in
43 86.0%
Nationalized Bank
Bank account in
9 18.0%
Cooperative Bank
Bank account in Private

5 10.0%
Bank
No bank account 0 .0%
SOURCE PRIMARY DATA
TABLE 4.1.12 shows the banks in which the retailers maintain their accounts. 86% of
retailers have account in nationalized banks and 18% have accounts in co-operative
banks and 10% have accounts in private bank. It shows that most of the retailers
36
maintain their accounts in nationalized banks. This information is depicted in the
following diagram.
GRAPH 4.1.12
BANKS IN WHICH ACCOUNTS ARE

MAINTAINED
90.00%
80.00%
70.00%
60.00%
Axis Title
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Bank account Bank account Bank account No bank
in in in Private account
Nationalized Cooperative Bank
Bank Bank
Series1 86.00% 18.00% 10.00% 0.00%
SOURCE PRIMARY DATA
TABLE 4.1.13
IMPACT OF DEMONETIZATION ON WORKING HOURS
Impact on working hours Count Table Total N %
Yes 40 80.0%
No 10 20.0%
Total 50 100.0%
TABLE 4.1.13 shows the impact of demonetization on the working hours of the
retailers. 40(80%) of retailers states that they lost their working hours for exchanging
their old notes in banks and 10(20%) of them says that they do not loss their working
hours for exchanging old notes. It is represented in the following diagram.
37
GRAPH 4.1.13
IMPACT OF DEMONETIZATION ON
WORKING HOURS
No
20%
Yes
80%
SOURCE PRIMARY DATA
TABLE 4.1.14
CURRENCY SHORTAGE DURING EMERGENCIES
Currency shortage during emergencies Count Table Total N %
Yes 45 90.0%
No 5 10.0%
Total 50 100.0%
TABLE 4.1.14 shows the responses on currency shortage during emergencies.

45(90%) of retailers opined that they faced shortage of currency during emergency
situation and only 5(10%) opined that they did not faced shortage of currency during
emergencies. It is depicted in the following diagram.
38
GRAPH 4.1.14
CURRENCY SHORTAGE DURING

EMERGENCIES
No
10%
Yes
90%
SOURCE PRIMARY DATA
TABLE 4.1.15
ACCEPTANCE OF DIGITAL PAYMENTS
Acceptance of digital payments Count Table Total N %
Yes 15 30.0%
No 35 70.0%
Total 50 100.0%
TABLE 4.1.15 shows whether the retailers accept digital payments in their shops.
35(70%) retailers do not accept digital payments and 15(30%) retailers accept digital
payments in their shops. This information is depicted in the following diagram.
39
GRAPH 4.1.15
ACCEPTANCE OF DIGITAL PAYMENTS
Yes
30%
No
70%
SOURCE PRIMARY DATA
TABLE 4.1.16
SWITCH TO DIGITAL PAYMENTS
Switch to digital payments Count Table Total N %
Already exist 15 30.0%
Yes 13 26.0%
No 22 44.0%
Total 50 100.0%
TABLE 4.1.16 shows the opinion of retailers on switching to digital payments.

22(44%) of the retailers are not interested to switch to digital payments and 15(30%)
already accepts digital payments and 13(26%) are ready to switch to digital payments.
It shows that retailers need more awareness on benefits of digital payments. The
information on the table is depicted in the following diagram.
40
GRAPH 4.1.16
SWITCH TO DIGITAL PAYMENTS
Already exist
30%
No
44%
Yes
26%
SOURCE PRIMARY DATA
TABLE 4.1.17
INCREASE IN BANKING TRANSACTION
Increase in banking transaction Count Table Total N %
Yes 20 40.0%
No 30 60.0%
Total 50 100.0%
TABLE 4.1.17 shows the retailers opinion on whether the banking transactions have
increased after demonetization. 30(60%) of the retailers opined that their banking
transaction has not increased after demonetization and 20(40%) opined that their
banking transaction has increased after demonetization. The following diagram
depicts this information.
41
GRAPH 4.1.17
Yes
40%
No
60%
SOURCE PRIMARY DATA
TABLE 4.1.18
PREFERRED MODE OF PAYMENTS
Preferred mode of payment Count Table Total N %
Cash 44 88.0%
Card 4 8.0%
Fund transfer 2 4.0%
Other 0 .0%
Total 50 100.0%
TABLE 4.1.18 shows retailers preferred mode of payment. 44(88%) of retailers prefer
payment through cash and 4(8%) prefer payment through card and 2(4%) prefer
payment through fund transfer. It shows that retailers prefer payment through cash.
The following graph depicts the retailers preferred mode of payment.
42
GRAPH 4.1.18
PREFFERED MODE OF PAYMENTS
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
cash card fund transfer other
Series1 88.00% 8.00% 4.00% 0.00%
SOURCE PRIMARY DATA
TABLE 4.1.19
OPINION ON COMPLETE CURRENCY DEMONETIZATION
Opinion on complete currency demonetization Count Table Total N %
Yes 6 12.0%
No 44 88.0%
Total 50 100.0%
TABLE 4.1.19 shows the retailers opinion on complete currency demonetization.

44(88%) of retailers does not agree to the idea of complete currency demonetization
and 6(12%) of retailers agree to the idea of complete currency demonetization. This
information is shown in the following diagram.
43
GRAPH 4.1.19
OPINION ON COMPLETE CURRENCY

DEMONETIZATION
Yes
12%
No
88%
SOURCE PRIMARY DATA
TABLE 4.1.20.A
OPINION ON CURRENCY DEMONETIZATION
Opinion on currency
demonetization Count Table Total N %
Strongly disagree 7 14.0%
Disagree 15 30.0%
No opinion 11 22.0%
Agree 14 28.0%
Strongly agree 3 6.0%
Total 50 100.0%
SOURCE PRIMARY DATA
TABLE 4.1.20A represents retailer’s opinion on currency demonetization. 15(30%)

retailers disagree to currency demonetization and 14(28%) agree to currency
demonetization and 11(22%) does not have any opinion and 7(14%) strongly disagree
to currency demonetization. So majority do not agree with currency demonetization.
This information is depicted in the following diagram.
44
GRAPH 4.1.20.A
16
14
12
10
Axis Title
8
6
4
2
0
STRONGLY DISAGREE NO AGREE STRONGLY
DISAGREE OPINION AGREE
Series1 7 15 11 14 3
SOURCE PRIMARY DATA
TABLE 4.1.20.B
OPINION ON VANISHING BLACK MONEY , TERRORISM , BRIBE
Opinion on vanishing black

money, terrorism, bribe Count Table Total N %
Disagree 8 16.0%
No opinion 13 26.0%
Agree 17 34.0%
Total 50 100.0%
TABLE 4.1.20B shows retailers opinion on that currency demonetization will vanish
black money, terrorism and bribe. 17(34%) of retailers agree that demonetization will
vanish black money, terrorism and bribe and 13(26%)does not have any opinion on it.
8(16%) disagree with it and 7(14%) strongly disagree with it and 5(10%) strongly
45
agree that currency demonetization will vanish black money, terrorism and bribe. The
following graph depicts this information
GRAPH 4.1.20.B
OPINION ON VANISHING
BLACKMONEY , TERRORISM , BRIBE
20
15
10
5
0
Series1 7 8 13 17 5
SOURCE PRIMARY DATA
TABLE 4.1.20.C
OPINION ON USEFULNESS TO ORDINARY PEOPLE
Opinion on usefulness to
ordinary people Count Table Total N %
Disagree 15 30.0%
No opinion 11 22.0%
Agree 14 28.0%
Total 50 100.0%
TABLE 4.1.20C shows the retailers opinion on that currency demonetization is useful
to ordinary people. 15(30%) disagree with that demonetization is useful to ordinary
people, 14(28%) agree with that demonetization is useful to ordinary people and
46
11(22%) does not have any opinion and 7(14%) strongly disagree with it and 3(6%)
strongly agree that currency demonetization is useful to ordinary people. This
information is depicted in the following graph.
GRAPH 4.1.20C
OPINION ON USEFULNESS TO ORDINARY

PEOPLE
16
14
12
Axis Title
10
8
6
4
2
0
Series1 7 15 11 14 3
SOURCE PRIMARY DATA
Table 4.1.20D
OPINION ON PROVIDING MORE INFORMATION ON DIGITAL PAYMENTS TO

DIGITALIZE ECONOMY
Opinion on providing information

to digitalize economy Count Table Total N %
Strongly disagree 0 .0%
Disagree 1 2.0%
No opinion 1 2.0%
Agree 21 42.0%
Total 50 100.0%
SOURCE PRIMARY DATA
47
TABLE 4.1.20D shows retailers opinion on whether to provide more information on
digital payments to develop a digital economy. 27(54%) of retailers strongly agree
that awareness is needed on digital payments to develop a digital economy and
21(42%) agree with it and 1(2%) does not have any opinion and 1(2%) disagree with
that more information need not to be provided on digital payments to develop a digital
economy. This information is depicted in the following graph.
GRAPH 4.1.20.D
OPINION ON PROVIDING MORE

INFORMATION ON DIGITAL ECONOMY
30
25
20
Axis Title
15
10
0
Series1 0 1 1 21 27
SOURCE PRIMARY DATA
48
PART 2
4.2 DAILY WAGED WORKERS
Table 4.2.1
TYPE OF JOB
Type of Job Count Table N %
Auto/taxi/bus drivers 30 60.0%
Sales man 6 12.0%
Construction worker 4 8.0%
Casual labour 5 10.0%
Others 5 10.0%
Total 50 100.0%
SOURCE PRIMARY DATA
TABLE 4.2.1 represents the job done by the respondent. 30(60%) of the daily waged
workers are auto, taxi, lorry and bus drivers. 6(12%) are sales man and 5(10%) of
them are casual labourers and other type of workers respectively. 4(8%) are
construction workers. This information is depicted in the following graph
49
GRAPH 4.2.1
TYPE OF JOB
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Auto/taxi Construction Casual
Sales man Other
drivers worker labourer
Series1 60.00% 12.00% 8.00% 10.00% 10.00%
SOURCE PRIMARY DATA
TABLE4.2.2
AVERAGE WEEKELY INCOME
Average Weekly Income Count Table Total N %

0-1000 16 32.0%
1001-2000 13 26.0%
2001-3000 13 26.0%
3001-4000 5 10.0%
4001-5000 3 6.0%
>5000 0 .0%
Total 50 100.0%
TABLE4.2.2 shows the average weekly income of daily waged workers. 16(32%)
daily waged workers have an average weekly income between 0-1000. 13(26%)
respondents have an average weekly income between 1001-2000 and 1001-2000
respectively. 5(10%) of them have an average weekly income between 3001-4000 and
3(6%) of them have an average weekly income between 4001-5000. From the table, it
50
is clear that 84% of daily waged workers have an average weekly income less than
RS.3000. The following graph represents this information
GRAPH 4.2.2
AVERAGE WEEKLY INCOME
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
0-1000 1001- 2001- 3001- 4001- >5000
2000 3000 4000 5000
Series1 32.00% 26.00% 26.00% 10.00% 6.00% 0.00%
SOURCE PRIMARY DATA
51
Table 4.2.3
PERCENTAGE IMPACT OF CURRENCY DEMONETIZATION ON

INCOME
Percentage impact of currency

demonetization on income Count Table Total N %
0-10 4 8.0%
11-20 5 10.0%
21-30 4 8.0%
31-40 7 14.0%
41-50 6 12.0%
51-60 4 8.0%
61-70 7 14.0%
71-80 7 14.0%
81-90 2 4.0%
91-100 4 8.0%
Total 50 100.0%
TABLE 4.2.3 shows the percentage impact of demonetization on daily waged workers
income. 7(14%) workers each opinioned that demonetization reduced their income by
71-80, 61-70 and 31-40 percentage respectively. 6(12%) workers opinioned that they
are affected up to 41-50%. 5(10%) of them states that they are affected by 11-20%.
4(8%) each opinioned that they are affected by 91-100%,51-60%, 21-30% and 0-10%
respectively. 2(4%) workers say that they are affected up to 81-90%. About 18(36%)
workers have lost their income between 51-80%. This information is depicted in the
following graph.
52
GRAPH 4.2.3
PERCENTAGE IMPACT OF CURRENCY

DEMONETISATION ON INCOME
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
0-10 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-
100
Series1 8.00% 10.00% 8.00% 14.00%12.00% 8.00% 14.00%14.00% 4.00% 8.00%
SOURCE PRIMARY DATA
TABLE4.2.4
MODE OF RECEIPT OF WAGES
Mode of receipt of wages Count Table Total N %
Cash 47 94.0%
Card 2 4.0%
Fund Transfer 1 2.0%
Other 0 .0%
Total 50 100.0%
TABLE 4.2.4 shows the mode of receipt of wages by the daily waged workers.
47(94%) 0f workers receive wages by cash and 2(4%) of workers receive wages by
card and the remaining 1(2%) receive wages by fund transfer. It shows that the
53
majority of daily waged workers receive their wages by cash. It is depicted in the
following graph.
GRAPH 4.2.4
MODE OF RECEIPT OF WAGES
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Cash Card Fund Transfer Other
Series1 94.00% 4.00% 2.00% 0.00%
SOURCE PRIMARY DATA
TABLE4.2.5
OTHER SOURCE OF INCOME
Other source of income Count Table Total N %
Yes 1 2.0%
No 49 98.0%
Total 50 100.0%
TABLE 4.2.5 shows whether the daily waged workers have any other source of
income. 49(98%) of workers does not have any other source of income and 1(2%)
worker has other source of income. It shows that most of the workers depend on their
daily wages. This information is represented in the following diagram.
54
GRAPH 4.2.5
OTHER SOURCE OF INCOME
Yes
2%
No
98%
SOURCE PRIMARY DATA
TABLE4.2.6
DIFFICULTY IN FINDING JOB
Difficulty in finding job Count Table Total N %
Yes 36 72.0%
No 14 28.0%
Total 50 100.0%
TABLE 4.2.6 shows whether the workers faced difficulty in finding jobs after currency
demonetization. 36(72%) says that they faced difficulty in finding jobs and 14(28%)
opinioned that they did not faced difficulty in finding jobs after demonetization. The
following diagram depicts this information.
55
GRAPH 4.2.6
DIFFICULTY IN FINDING JOB
No
28%
Yes
72%
SOURCE PRIMARY DATA
TABLE 4.2.7
SHORTAGE OF SMALLER DENOMINATION CURRENCY
Shortage of smaller denomination currency Count Table Total N %
Yes 40 80.0%
No 10 20.0%
Total 50 100.0%
TABLE 4.2.7 represents the shortage of smaller denomination currency. 40(80%)

daily waged workers opined that they faced shortage of smaller denomination
currency after demonetization and 10(20%) opined that they did not faced shortage
of smaller denomination currencies. This information is shown in the following
diagram.
56
GRAPH 4.2.7
SHORTAGE OF SMALLER DENOMINATION

CURRENCY
No
20%
Yes
80%
TABLE4.2.8
IMPACT OF CURRENCY DEMONETIZATION ON DAILY EXPENSES
Impact on daily expenses Count Table Total N %
Yes 38 76.0%
No 12 24.0%
Total 50 100.0%
TABLE 4.2.8 shows the impact of currency demonetization on the daily expenses of
the daily waged workers. 38(76%) opinioned that currency demonetization badly
affected their daily expenses and 12(24%) opinioned that currency demonetization
57
does not affect their daily expenses. This information is depicted in the following
diagram.
GRAPH 4.2.8
IMPACT ON DAILY EXPENSES
No
24%
Yes
76%
SOURCE PRIMARY DATA
TABLE4.2.9
CURRENCY SHORTAGE DURING EMERGENCIES
Currency shortage during

emergencies Count Table Total N %
Yes 43 86.0%
No 7 14.0%
Total 50 100.0%
TABLE 4.2.9 shows the responses on currency shortage during emergencies. 43(86%)
of daily waged workers opinioned that they faced shortage of currency during
58
emergency situation and 7(14%) opinioned that they did not faced shortage of
currency during emergencies. It is depicted in the following diagram.
GRAPH 4.2.9
CURRENCY SHORTAGE DURING

EMERGENCIES
No
14%
Yes
86%
SOURCE PRIMARY DATA
TABLE 4.2.10
BANK ACCOUNT
Bank Account
Yes 41 82.0%
No 9 18.0%
Total 50 100.0%
SOURCE PRIMARY DATA
TABLE 4.2.10 shows that whether the daily waged workers have a bank account.
41(82%) daily waged workers have a bank account and 9(18%) workers do not have a
bank account. This information is depicted in the following diagram.
59
GRAPH 4.2.10
BANK ACCOUNT
No
18%
Yes
82%
SOURCE PRIMARY DATA
TABLE 4.2.11
BANKS IN WHICH ACCOUNTS ARE MAINTAINED
Banks in which accounts are Table Responses

maintained Count %
Account in Nationalized
31 62.0%
bank
Account in Co-operative
16 32.0%
bank
Account in Private bank 1 2.0%
No bank account 9 18.0%
SOURCE PRIMARY DATA
TABLE 4.2.11 shows the banks in which the daily waged workers maintain their
accounts. Only 41(82%) daily workers have a bank account. Out of it, 62% of daily
60
waged workers have account in nationalized banks and 32% have accounts in co-
operative banks and 2% have accounts in private bank. It shows that most of the daily
waged workers maintain their accounts in nationalized banks. This information is
depicted in the following diagram.
GRAPH 4.2.11
BANKS IN WHICH ACCOUNTS ARE

MAINTAINED
70.00%
60.00%
50.00%
Axis Title
40.00%
30.00%
20.00%
10.00%
0.00%
Account in Account in Account in No bank
Nationalised Co-operative Private bank account
bank bank
Series1 62.00% 32.00% 2.00% 18.00%
SOURCE PRIMARY DATA
61
TABLE 4.2.12
OPENING OF BANK ACCOUNT
Opening of bank account Table Total N

Count %
After demonetization 4 8.0%
Before demonetization 37 74.0%
Total 41 100.0%
SOURCE PRIMARY DATA
TABLE 4.2.12 shows the period of opening of bank account by daily waged workers.
Out of 37(90%) of daily waged workers had opened their bank account before
demonetization and 4(10%) workers opened their bank account after demonetization.
The following diagram depicts this information.
GRAPH 4.2.12
OPENING OF BANK ACCOUNT

After
Demonetisation
10%
Before
Demonetisation
90%
SOURCE PRIMARY DATA
62
TABLE 4.2.13
DIFFICULTY IN EXCHANGING OLD NOTES
Difficulty in exchanging old notes Count Table Total N %
Yes 24 48.0%
No 26 52.0%
Total 50 100.0%
TABLE 4.2.13 shows the opinion of daily waged workers on whether they faced
difficulty in exchanging old notes. 26(52%) opined that they did not faced difficulty
in exchanging old notes and 24(48%) workers opined that they faced difficulty in
exchanging old notes. This information is depicted in the following diagram.
GRAPH 4.2.13
DIFFICULTY IN EXCHAGING OLD NOTES
Yes
No 48%
52%
SOURCE PRIMARY DATA
63
TABLE 4.2.14
IMPACT OF DEMONETIZATION ON WORKING HOURS
Impact on working hours Count Table Total N %
Yes 33 66.0%
No 17 34.0%
Total 50 100.0%
TABLE 4.2.14 shows the impact of demonetization on the working hours of the daily
waged workers. 33(66%) of daily waged workers’ states that they lost their working
hours for exchanging their old notes in banks and 17(34%) of them says that they do
not loss their working hours for exchanging old notes. This information is represented
in the following diagram.
GRAPH 4.2.14
IMPACT ON WORKING HOURS
No
34%
Yes
66%
SOURCE PRIMARY DATA
64
Table 4.2.15
Increase in banking transactions

Yes 8 16.0%
No 42 84.0%
Total 50 100.0%
TABLE 4.2.15 shows the daily waged workers opinion on whether the banking
transactions have increased after demonetization. 42(84%) of daily waged workers
opined that their banking transaction has not increased after demonetization and
8(16%) opined that their banking transaction has increased after demonetization. The
following diagram depicts this information
GRAPH 4.2.15
INCREASE IN BANKING TRANSACTIONS
90.00%
80.00%
70.00%
60.00%
Axis Title
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Yes No
Series1 16.00% 84.00%
SOURCE PRIMARY DATA
65
TABLE 4.2.16
KNOWLEDGE IN DIGITAL BANKING
Knowledge in digital banking Count Table Total N %
Yes 5 10.0%
No 45 90.0%
Total 50 100.0%
TABLE 4.2.16 shows that whether the daily waged workers have knowledge in digital
banking. 45(90%) of workers does not have a knowledge in digital banking and
5(10%) daily waged workers have a knowledge in digital banking. This shows that the
daily waged workers should be given more awareness on digital banking. This
information is represented in the following diagram.
GRAPH 4.2.16
KNOWLEDGE IN DIGITAL BANKING
YES
10%
NO
90%
SOURCE PRIMARY DATA
66
TABLE 4.2.17
USAGE OF DIGITAL BANKING
Usage of digital banking Count Table Total N %
Yes 2 4.0%
No 48 96.0%
Total 50 100.0%
TABLE 4.2.17 shows that whether the daily waged workers had ever made a digital
banking transaction. 48(98%) workers’ states that they had not made any digital
banking transaction ever and 2(4%) says that they have conducted digital banking
transaction. The following diagram depicts this information.
GRAPH 4.2.17
USAGE OF DIGITAL BANKING
Yes
4%
No
96%
SOURCE PRIMARY DATA
67
Table 4.2.18
OPINION ON RECEIVING WAGES THROUGH BANKS
Opinion on receiving wages

through bank Count Table Total N %
Yes 15 30.0%
No 35 70.0%
Total 50 100.0%
TABLE 4.2.18 shows daily waged workers opinion on receiving wages through
banks. 35(70%) workers did not agree with the idea of receiving wages through bank
and 15(30%) daily waged workers agreed with the idea of receiving wages through
banks. This information is depicted in the following diagram.
GRAPH 4.2.18
OPINION ON RECEIVING WAGES THROUGH

BANK
Yes
30%
No
70%
SOURCE PRIMARY DATA
68
TABLE 4.2.19
OPINION ON COMPLETE CURRENCY DEMONETIZATION
Opinion on complete currency

Yes 10 20.0%
No 40 80.0%
Total 50 100.0%
TABLE 4.2.19 shows daily waged workers opinion on complete currency

demonetization. 40(80%) of daily waged workers does not agree with the idea of
complete currency demonetization and 10(20%) workers agreed with the idea of
complete currency demonetization. The following graph depicts daily waged worker’s
opinion on complete currency demonetization.
GRAPH 4.2.19
OPINION ON COMPLETE CURRENCY

DEMONETIZATION
80.00%
70.00%
60.00%
50.00%
Series1
40.00%
30.00%
20.00%
10.00%
0.00%
Yes No
SOURCE PRIMARY DATA
69
TABLE 4.2.20A
Opinion on currency
Disagree 17 34.0%
No opinion 8 16.0%
Agree 12 24.0%
Total 50 100.0%
TABLE 4.2.20A shows daily waged workers opinion on currency demonetization.

17(34%) workers disagree with currency demonetization and 12(24%) workers agree
with it and 8(16%) workers do not have an opinion on it and 7(14%) workers strongly
disagree with it and 6(12%) workers strongly agree with currency demonetization. So
majority does not agree with currency demonetization. This information is depicted in
the following graph.
GRAPH 4.2.20A
OPINION ON CURRENCY
DEMONETIZATION
20
15
Axis Title
10
0
Series1 7 17 8 12 6
70
TABLE 4.2.20B
OPINION ON VANISHING BLACK MONEY TERORRISM, BRIBE
Opinion on vanishing black

money, terrorism, bribe Count Table Total N %
Disagree 14 28.0%
No opinion 11 22.0%
Agree 13 26.0%
Total 50 100.0%
TABLE 4.2.20B shows daily waged workers opinion on that demonetization will
vanish black money, terrorism and bribe. 14(28%) workers disagree that
demonetization will vanish black money, terrorism and bribe and 13(26%) workers
agree with it and 11(22%) workers have no opinion on it and 10(20%) workers
strongly agree with it and 2(4%) workers strongly disagree that demonetization will
vanish black money, terrorism and bribe. The following graph depicts this
information.
71
GRAPH 4.2.20.B
OPINION ON VANISHING BLACK

MONEY,TERRORISM,BRIBE
14
12
10
Axis Title
8
6
4
2
0
Series1 2 14 11 13 10
SOURC PRIMARY DATA
TABLE 4.2.20C
OPINION ON USEFULNESS TO ORDINARY PEOPLE
Opinion on usefulness to ordinary people Count Table Total N %
Disagree 11 22.0%
No opinion 13 26.0%
Agree 5 10.0%
Total 50 100.0%
TABLE 4.2.20C shows daily waged workers opinion on that demonetization is useful
to ordinary people. 13(26%) workers each strongly disagree and has no opinion on
that demonetization is useful to ordinary people. 11(22%) workers disagree and
72
8(16%) workers strongly agree it. 5(10%) workers agree that demonetization is useful
to ordinary people. This information is depicted in the following graph.
GRAPH 4.2.20.C
OPINION ON USEFULNESS TO ORDINARY

PEOPLE
14
12
10
Axis Title
8
6
4
2
0
Series1 13 11 13 5 8
SOURCE PRIMARY DATA
TABLE 4.2.20 D
OPINION ON PROVIDING MORE INFORMATION ON DIGITAL

PAYMENTS TO DIGITALIZE ECONOMY
Opinion on providing more information to digitalize

economy Count Table Total N %
Strongly Disagree 2 4.0%
Disagree 2 4.0%
No Opinion 3 6.0%
Agree 20 40.0%
Strongly Agree 23 46.0%
Total 50 100.0%
73
TABLE 4.2.20D shows daily waged workers opinion on whether to provide more
information on digital payments to develop a digital economy. 23(46%) of daily
waged workers strongly agree that awareness is needed on digital payments to
develop a digital economy and 20(40%) agree with it and 3(6%) does not have any
opinion and 2(4%) disagree with it and 2(4%) workers strongly disagree that more
information should be provided on digital payments to develop a digital economy.
The information is depicted in the following graph.
GRAPH 4.2.20D
OPINION ON MORE INFORMATION TO

DIGITAL ECONOMY
25
20
15
10
0
Series1 2 2 3 20 23
SOURCE PRIMARY DATA
74
TESTING OF HYPOTHESES
1. H0: There is no relation between weekly sales turnover of retailer and
percentage impact of currency demonetization on business
H1: There is significant relation between weekly sales turnover of retailer
and percentage impact of currency demonetization on business
Chi-Square Tests
Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square 49.021a 54 .666
Likelihood Ratio 46.893 54 .743
Linear-by-Linear Association .000 1 .988
N of Valid Cases 50
Here the Pearson chi-square value is .666 which is above.05, hence the null
hypothesis is accepted and alternative hypothesis is rejected. So there is no relation
between weekly sales turnover of retailer and percentage impact of currency
demonetization on business. So the impact of currency demonetization does not
depend on weekly sales turn over.
2. H0: There is no relation between average weekly income and percentage

impact of demonetization on income
75
H1: There is significant relation between average weekly income and
percentage impact of demonetization on income
Chi-Square Tests
Asymp. Sig. (2-

Value df sided)
Linear-by-Linear Association 11.620 1 .001
N of Valid Cases 50
Here the Pearson chi-square value is .226 which is above .05, hence the null
between average weekly income and percentage impact of demonetization on income.
So the percentage impact of demonetization does not depend on income basis.
3. H0: There is no relation between knowledge in digital banking and opinion

in receiving wages through banks
H1: There is significant relation between knowledge in digital banking and
opinion in receiving wages through banks
76
Chi-Square Tests
Asymp. Sig. Exact Sig. Exact Sig.

Value df (2-sided) (2-sided) (1-sided)
Continuity Correctionb 1.058 1 .304
Fisher's Exact Test .152 .152
Linear-by-Linear
2.333 1 .127
Association
N of Valid Casesb 50
Here the Pearson chi-square value is .123 which is above .05, hence the null
between knowledge in digital banking and opinion in receiving wages through banks.
So we cannot say that daily waged workers disagree with providing wages through
banks due to lack of knowledge in digital banking.
77
CHAPTER5
FINDINGS, SUGGESTIONS AND
CONCLUSION
78
CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSION
5.1 INTRODUCTION
The study entitled “Impact of currency demonetization on retailers and daily waged
workers in Pala municipality” was conducted with the objective of identifying
whether the currency demonetization policy affected the sale of retailers and to check
whether the traders implemented electronic payment system and to know whether the
daily waged workers faced any work problems after currency demonetization and to
check whether the workers are familiar to banking transactions and digital payments.
The data was collected by using schedules and the collected data was analyzed by
using SPSS software and careful interpretation is made to fulfill the objectives of the
study.
5.2 FINDINGS OF THE STUDY
As per the analysis done on the chapter IV, following are the findings of the study.
5.2.1 RETAILERS
 Most of the retailers (40%) have started their business for about more than 10
years.
 Most of the retailers (56%) have a weekly sales turn over less than RS.30000
 All (100%) retailers receive payment from customers through cash and
15(30%) receives payment by cash and card.
 Most of the retailers (88%) acquire stock by cash and 32% retailers acquire
stock by card and fund transfer.
 Majority of retailers (72%) make salary payment to their staff by cash and
10% makes payment through fund transfer.
79
 About 46% retailers opinioned that currency demonetization had affected their
business by 41-70%.
 Most of the retailers (90%) faced shortage of smaller denomination currencies.
 Most of the retailers (90%) opinioned that shortage of smaller denominated
currencies badly affected their business and they were not able to make
transaction due to lack of smaller denominated currencies.
 Majority of the retailers (84%) faced difficulty in acquiring stock due to
currency demonetization.
 About (56%) retailers faced difficulty in making salary payments to their staff
due to currency demonetization
 Most of the retailers (86%) maintain their bank accounts in nationalized banks.
 About 80% retailers have lost their working hours for exchanging old currency
notes.
 Majority of the retailers (90%) faced currency shortage during emergency
situations.
 Most of the retailers (70%) do not have the facility to accept digital payments.
 Most of the retailers (44%) are not ready to switch to digital payments.
 Most of the retailers (60%) opinioned that their banking transaction has not
increased after currency demonetization.
 Majority of retailers (88%) prefer payments through cash.
 Majority of retailers (88%) do not agree with complete currency
demonetization.
5.2.2 DAILY WAGED WORKERS
 Out of the 50 daily waged workers, (84%) have an average weekly income
less than RS.3000.
 About 36% of daily waged workers are affected by 51-80% decrease in their
weekly income.
80
 Majority of daily waged workers (94%) receive their payments through cash
 Majority of daily waged workers (98%) do not have other source of income.
They depend on their daily wages.
 Most of the daily waged workers (72%) faced difficulty in finding jobs after
currency demonetization. It reduced their earnings.
 Most of the daily waged workers (80%) faced shortage of smaller
denomination currency after demonetization. As a result, they were not able to
spend for their needs.
 Most of the daily waged workers (76%) were not able to meet their daily
needs due to shortage of currency and because of withdrawal limitations.
 Majority of daily waged workers (86%) faced currency shortage during their
emergency needs like hospitals, marriage etc.
 Majority of daily waged workers (82%) have bank account and (62%) of it is
in nationalized banks.
 Most of the daily waged workers (74%) opened their bank account before
currency demonetization
 Most of the daily waged workers (52%)are of the opinion that they faced
difficulty in exchanging old notes.
 Majority of daily waged workers (66%) state that they lost their working for
exchanging old notes.
 Majority of the daily waged workers (84%) opinioned that their banking
transaction has not increased after currency demonetization.
 Majority of daily waged workers (90%) are not aware of digital banking
transaction.
 Majority of daily waged workers (96%) have never made a digital banking
transaction.
 Most of the daily waged workers (70%) do not agree with the opinion of
receiving wages through banks.
 Majority of the daily waged workers (80%) does not agree with the idea of
complete currency demonetization.
81
 Only 34% of daily waged workers does not agree with currency
demonetization.
 Most of the daily waged workers (46%) agree that currency demonetization
will vanish black money, terrorism and bribe.
 Most of the daily waged workers (48%) do not agree that currency
demonetization is useful to ordinary people.
 Majority of the daily waged workers (86%) says that ordinary people should
be given more awareness on digital payments to develop a digital economy.
5.3 SUGGESTIONS
Based on the findings of the study, following are the various suggestions put forward
by the researchers,
 Government should adopt this currency demonetization after issuing enough

of smaller denomination currencies.
 More facilities should be provided to avoid the difficulties in exchange their
old currency notes.
 Awareness should be given to retailers and daily waged workers on digital
payments and its benefits.
 Government must take steps to provide Point of Sale machines at a low
installation cost to retailers and thereby to attract more retailers to digital
payment system.
5.4 CONCLUSION
The study entitled “Impact of currency demonetization on daily waged workers and
retailers in Pala municipality” was conducted with a view to understand how currency
demonetization affected daily waged workers and retailers. Demonetization of higher
denominated currencies of Rs.500 and Rs.1000 was a bold step taken by the central
government to vanish away terrorism, black money and bribe. It was step to clean our
economy. Government implemented it on a night in order to not to lose its effect.
82
However, there was not enough of smaller denomination currencies. As a result, people
faced a lot of difficulties to meet their daily needs and to make transactions with large
denominated notes.
Majority of daily waged workers opened their bank account before currency
demonetization and most of retailers and daily waged workers opinioned that their
banking transaction has not increased after currency demonetization. It shows that
objective of currency demonetization has not much on daily waged workers and
retailers in Pala municipality. People faced difficulties for exchanging old notes. So
before implementing these policies, government must have taken the precautionary
steps like making arrangements for issuing smaller denominated currencies and the
banking should be pre prepared.
Majority of daily waged workers are not aware of digital payments and around half of
the respondent retailers are not ready to switch to digital payments. Daily waged
workers should be made aware on digital payments, awareness on the benefits of digital
payments should be given to retailers, and the transaction charges charged on digital
payments by the banks should be reduced to attract new retailers to digital payment
system. Thus it can be concluded currency demonetization was a brilliant step and it
does not have a large impact on ordinary people, but it created difficulties to people due
to inefficiency in its implementation.
83
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future-2/
 Krishnamachari, S. V. (2016, November 11). Retrieved from IBT:
http://www.ibtimes.co.in/indias-economic-growth-take-hit-due-de-
monetisation-india-ratings-703576
 Maithani, A., & Nalsar. (2016, November 11). Retrieved from Lawctopus:
http://www.lawctopus.com/currency-demonetization-essay-anubhuti-maithani-
nalsar/
 Mukhopadhyay, B. (2016, December 01). Retrieved from Springer link:

http://link.springer.com/article/10.1186/s40854-016-0047-4
 OmGhyan, A. (2017, March 17). Retrieved from Studydhaba:

https://www.studydhaba.com/demonetization-pdf/
 Raffath, H. (2016, December 13). Retrieved from Dazeinfo: .

https://dazeinfo.com/2016/12/13/demonetisation-workers-salary-cashless/
 Shepard, W. (2016, December 12). Retrieved from Forbes:

https://www.forbes.com/sites/wadeshepard/2016/12/12/one-month-in-whats-
the-impact to find Indias-demonetization-fiasco/#2611a3cb7ab1
 Singh, A. (2016, November 18). Retrieved from Ieopinion:

http://www.insightsonindia.com/2016/11/18/6-critically-analyse-impact-
demonetization-unorganized-sector/
 Thakur, R. (2016, November 27). Retrieved from The Japan Times: .

http://www.japantimes.co.jp/opinion/2016/11/27/commentary/world-
commentary/economic-political-risks-indias-demonetization/
 Vijay, K. P. (2016, December 01). Retrieved from Moneycontrol:

http://www.moneycontrol.com/news/business/economy/impact-
analysisdemonetizationindia-920030.html
 Yadav, A. (2016, November 20). Retrieved from Scroll.in:

http://scroll.in/article/821926/days-after-demonetisation-factory-workers-
daily-wagers-brave-crises-old-and-new
APPENDIX
Appendix 1- RETAILERS
കറന്‍സി നിര ോധനവ ും പ്രത്യോഘോത്ങ്ങള ും

രരര് :
1. ഏത് തരം സ്ഥാപനം?
 പലച്ചരക്ക്  ടെക്സ്റ്േയില്‍സ്
 ബേക്കറി  മറ്റുള്ളവ
 ബേഷനറി
2. തുെങ്ങിയിട്ട് എത്ത വർഷമായി?
 0-2  5 -10
 2-5  > 10
3. ഒരാഴ്ചടെ വിറ്റുവരവ് എത്ത?
 0-15000  60001-75000
 15001-30000  75001-90000
 30001-45000  >90000
 45001-60000
4.ഏത് മാർഗ്ഗെിലൂടെയാണ് കേബമഴ്സില്‍സ നിന്ും ടപയ്ടമന്‍റ്

സവീകരിക്കുന്ത്?
 കയാഷ്  ഫണ്ട് ത്ൊൻ്ഫർ

 കാർഡ്  മറ്റുള്ളവ
5.എത് മാർബേനയാണ് നിങ്ങൾ ബോക്ക് എെുക്കുന്ത്?

6.ോഫിനു ശമ്പളം ടകാെുക്കുന്ത് എങ്ങടനയാണ്?

7.ബനാട്ട് നിബരാധനം നിങ്ങളുടെ കച്ചവെടെ എത്ത ശതമാനം ോധിച്ചു?
 0-10  41-50  81-90

 11-20  51-60  91-100
 21-30  61-70
 31-40  71-80
8.ചിലലറ ക്ഷാമം അനുഭവടെടട്ടാ?
 ഉണ്ട്  ഇലല
9.ചിലലറ ക്ഷാമം നിങ്ങളുടെ കച്ചവെെിന് ഇെിവ് ഉണ്ടാക്കിബയാ?
10.ബനാട്ട് നിബരാധനം കാരണം ചരക്ക് എെുക്കുന്തില്‍സ േുദ്ധിമുട്ട് ഉണ്ടാബയാ?
11.ോഫിനു ശേളം ടകാെുക്കുന്തില്‍സ േുദ്ധിമുട്ട് ഉണ്ടാബയാ?
12.താങ്കളുടെ ോങ്ക് അക്കൗണ്ട് എവിടെയാണ്?
 നാഷണലല്ഡ് ോങ്ക്  ലത്പവറ്റ് ോങ്ക്

 സഹകരണ ോങ്ക്
13.ബനാട്ട് മാറുന്തിനും മറ്റും ടതാഴില്‍സ സമയം നഷ്ടമാബയാ?
14.അതയാവശ സമയങ്ങളില്‍സ പണം ലഭയമലലാടത വബന്ാ?
15.ഏത് അവസരെില്‍സ-
16.താങ്കളുടെ കെയില്‍സ ഡിജിറ്റല്‍സ ടപയ്ടമന്റ് അനുവദിച്ചിട്ടുബണ്ടാ?
17.ഇടലലങ്കില്‍സ അത് ആരംഭിക്കാൻ ഉബേശിക്കുന്ുബണ്ടാ?
18.ബനാട്ട് നിബരാധനബശഷം നിങ്ങളുടെ ോങ്കിംഗ് ഇെപാെുകളില്‍സ വർദ്ധനവ്
ഉണ്ടാബയാ?
19.നിങ്ങൾ മുൻേണന ടകാെുക്കുന് ടപയ്ടമന്് സിേം ഏതാണ്?

20.പൂർണ്ണമായ കറൻസി നിബരാധനടെ നിങ്ങൾ അനുകൂലിക്കുന്ുബവാ?
അഭിത്പായം ശക്ത ബയാജി അഭിത്പാ വിബയാ ശക്തമാ
പറയുക മായി ക്കുന്ു യമിലല ജിക്കു യി
ബയാജി ന്ു വിബയാജി
ക്കുന്ു ക്കുന്ു
കറൻസി
നിബരാധനബൊട്
നിങ്ങൾ
ബയാജിക്കുബന്ാ
കറൻസി
നിബരാധനം ഇവ
തുെച്ച് നീക്കും:
കള്ളെണം
ഭീകരവാദം
അഴിമതി
കറൻസി
നിബരാധനം വഴി
സാധാരക്കാർക്ക്
ത്പബയാജനം ഉണ്ട്
ഡിജിറ്റല്‍സ
എകബണാമി
ആക്കാൻ
ആളുകൾക്ക്കുറച്ച്
കൂെി അറിവ്
നല്കണം
Appendix 2- DAILY WAGED WORKERS
കറന്‍സി നിര ോധനവ ും പ്രത്യോഘോത്ങ്ങള ും
രരര്:
.1 ഏത് തരം ബജാലി ടചയ്യുന്ു ?

 ഓബട്ടാൊക്സ്റ്സി/ ലത്ഡവിംഗ്  നിർമാണ ടതാഴിലാളി
 കെയില്‍സ ദിവസബവതന  കൂലിെണി
ബജാലി  മറ്റുള്ളവ
.2ഒരാഴ്ചടെ ശരാശരി വരുമാനം എത്ത?
 1000 - 0  4000 – 3001
 2000 – 1001  5000 – 4001
 3000 – 2001  5000 >
.3 ബനാട്ട് നിബരാധനം നിങ്ങളുടെ വരുമാനടെ എത്ത ശതമാനം ോധിച്ചു
?
 10 – 0  50 – 41  90 – 81
 20 – 11  60 – 51  100 – 91
 30 – 21  70 – 61
 40 - 31  80 – 71
.4 ഏത് മാർേെിലൂടെയാണ് ബവതനം ലഭിക്കുന്ത്?
 കാർഡ്  മറ്റു മാർേങ്ങൾ
.5മറ്റു വരുമാന മാർേങ്ങൾ ഉബണ്ടാ?
.6ബനാട്ട് നിബരാധനബശഷം ടതാഴില്‍സ ലഭിക്കുന്തിന് േുദ്ധിമുട്ടുണ്ടാബയാ?

7ബനാട്ട് നിബരാധന .ബശഷം ചിലലറക്ഷാമം അനുഭവടെബട്ടാ?

.8ചിലലറക്ഷാമം മൂലം ടചലവുകൾക്ക് േുദ്ധിമുട്ടുണ്ടാബയാ?
9അതയാ .വശ അവസരങ്ങളില്‍സ പണം ലഭയമലലാടത വബന്ാ?
10 ഏത് .അവസരെില്‍സ -
 വിവാഹം  മറ്റുള്ളവ----------------------
 ആശുപത്തി
11 താങ്ക്ൾക്ക് ോങ്ക് .അക്കൗണ്ട് ഉബണ്ടാ?
12ഏത് . ോങ്കില്‍സ ?
 നാഷണലലടസഡ് ോങ്ക്  ലത്പവറ്റ് ോങ്ക്
 സഹകരണ ോങ്ക്
13ഏത് . സമയെ് ആരംഭിച്ചു ?
 ബനാട്ട് നിബരാധനബശഷം  ബനാട്ട് നിബരാധനെിനു
മുൻ്
14 ബനാട്ട് നിബരാധനബശഷം പഴയ ബനാട്ടുകൾ മാറ്റുന്തിന്
േുദ്ധിമുട്ടുണ്ടാബയാ ?
15ബനാട്ട് . മാറ്റുന്തിനും മറ്റും ടതാഴില്‍സ സമയം നഷ്ടമാബയാ?
16ബനാട്ട് നിബരാധന .ബശഷം ോങ്കിംഗ് ഇെപാെുകളില്‍സ വർധനവ് ഉണ്ടാബയാ
?
17 .ഡിജിറ്റല്‍സ ോങ്കിംഗ്ടന-ക്കുറിച്ച് അറിവുബണ്ടാ?
18 നിങ്ങൾ .ഡിജിറ്റല്‍സ ോങ്കിംഗ് ഇെപാെുകൾ നെെിയിട്ടുബണ്ടാ?
19ബവതനം . നല്‍സക്കുന്ത് ോങ്ക് വഴി ആക്കുന്തിബനാട് നിങ്ങൾ
ബയാജിക്കുന്ുബണ്ടാ?
20. പൂർണമായ കറൻസി നിബരാധനബൊട് നിങ്ങൾ ബയാജിക്കുന്ുബണ്ടാ?
 ഉണ്ട്
 ഇലല
അഭിത്പായം ശക്തമാ ബയാ അഭിത്പായ വിബയാജി ശക്തമായി
പറയുക യി ജിക്കു മിലല ക്കുന്ു
ബയാജി ന്ു വിബയാജി
ക്കുന്ു ക്കുന്ു
കറൻസി
നിബരാധന
ബൊട്
നിങ്ങൾ
ബയാജിക്കു
ബന്ാ?
കറൻസി
നിബരാധനം
ഇവ
തുെച്ച്
നീക്കും:
കള്ളെണം
ഭീകരവാദം
അഴിമതി
കറൻസി
നിബരാധനം
വഴി
സാധാരണ
ക്കാർക്ക്
ത്പബയാജനം
ഉണ്ടാകുന്ു
ണ്ട്
ഡിജിറ്റല്‍സ
എകബണാമി
ആക്കാൻ
ആളുകൾക്ക്
കുറച്ച്ക്കൂെി
അറിവ്
നല്കണം

A Study On The Impact of Currency Demonetization On Retailers and Daily Waged Workers in Pala Muncipality

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A STUDY ON THE IMPACT OF CURRENCY

DEMONETIZATION ON RETAILERS AND DAILY

THE MAHATMA GANDHI UNIVERSITY

In partial fulfillment of the requirement of the award of the degree of

SHERIN JOSEPH JOHN (Reg. No.140021006025)

TONY BABY (Reg. No.140021006027)

ZACHARIAS AUGUSTINE (Reg. No. 140021006028)

Under the supervision and guidance of

Sri. Binoy Chacko

RESEARCH &P.G. DEPARTMENT OF COMMERCE

ST. THOMAS COLLEGE, PALA

ST. THOMAS COLLEGE, PALAI

Counter signed by Guide

Sri. K.V.John Sri. Binoy Chacko

St. Thomas College, Pala Department of Commerce

Sherin Joseph John

It is with immense gratitude that we acknowledge the assistance and encouragement

Sherin Joseph John

Chapter Title Page No.

Table No. Title Page No.

4.2.1 Type of job 49

Graph No. Title Page No.

4.1.7 Percentage impact of 32

4.1.16 Switch to digital 41

4.1.18 Preferred mode of 43

4.2.6 Difficulty in finding job 56

1.2 STATEMENT OF THE PROBLEM

1.3 SCOPE OF THE STUDY

 To identify whether the currency demonetization policy affected the sale of

1.5 HYPOTHESIS OF THE STUDY

1.6 RATIONALE OF THE STUDY

The government introduced demonetization policy as a move to prevent black money

1.7 REFERENCE PERIOD

1.8 RESEARCH METHODOLOGY

1.10 CHAPTER SCHEME

The researcher presents the details of the study in 5 distinctive chapters:

CHAPTER1: This chapter includes introduction to topic, statement of problem, scope

M.Chelladurai. (2016) In his study, “DEMONETIZATION OF INDIAN

Geeta Rani (2016) conducted a study titled “EFFECTS OF DEMONETIZATION ON

Partap Singh (2016) conducted a study titled “IMPACT OF DEMONETIZATION

Ashish Kumar Tripathi (2016) conducted a study entitled “DEMONETIZATION

The dictionary meaning of DEMONETIZE is “To deprive (a metal) of its capacity as a

 GDP formation will be effected with the reduction in consumption demand.

 Government revenue will boost up as more earnings would be declared. The

3.1.5 LOOPHOLES IN DEMONETIZATION:

Zero Interest Loans:

Bank Note Mafia:

Paying Advance Salaries:

Cancelling Train Tickets:

Donations to Political Parties:

SOURCE: PRIMARY DATA

SOURCE: PRIMARY DATA

Years of Service Count Table Total N %

SOURCE: PRIMARY DATA

WEEKLY SALES TURNOVER

SOURCE: PRIMARY DATA

WEEKLY SALES TURNOVER

SOURCE: PRIMARY DATA

MODE OF RECEIVING PAYMENT FROM CUSTOMERS

Payment through cash 50 100%

Payment through card 15 30%

Payment through fund

Payment through other ways 0 .0%