“Impact of Demonetization

on Farmers and Other

People from Rural
Background and Their
Perception on
Demonetization”
ANAND MOHAN
ARJUN SINGH
DEVAANSH BHANDARI
AKASH RANABHAT
ANWAR ASHRAF
INTRODUCTION
• Demonetization is the process of devaluing a piece of currency to zero. It is changing
the value of denomination of currency to nil, making it a piece of paper with absolutely
no value.

• The scheme, popularly called “notebandi”, was with aim to end the menace of black
money, counterfeit currency, and corruption. Inevitably, low-income, and rural
households have been hardest hit by this currency reform.

• The effects of demonetization have been more worrying in the rural parts of the
country which are even more dominated by cash and which have limited physical
accessibility to banks and other financial institutions. To go at bank branches in rural
areas is still time consuming and costly for common people at Rural India.
Supplementary digital financial services like ATMs and POS machines at shops are
inadequate in number and crippled with infrastructural issues.
OBJECTIVE
The objective of the research is:
• To find out the impact of demonetization on farmers and the people of
rural areas.
• To find out whether they are aware about the other payment systems
like paytm, BHIM app, freecharge etc.
• To know about the other payment systems used by the people in rural
areas instead of cash.
• To find the viewpoints of farmers and the people in rural areas about the
current situation after two years of demonetization.
METHODOLOGY
• Study area mainly included Panchayatan Village of Uttar Pradesh, India.
• The research was carried out by survey of 20 families with the help of
questionnaires.
• Respondents were selected from heterogeneous background and
diversity in education, annual income and occupation.
• The questionnaire addresses impact of demonetization and response of
people at initial stage and after two year of demonetization
announcement.
RESULT
DEMONETIZATION DECISION FREQUENCY OF NOTES EXCHANGED
COMMUNICATED THROUGH
More than
Other 6-10 times 10 times
persons 7% 1%
15% 1 time
29%
Social
media
10%

News TV
Papers 62%
13% 2-5 times
63%
 TIME REQUIRED FOR IMPACT OF DEMONETIZATION ON
EXCHANGE OF NOTES IN BANK EMPLOYMENT/BUSINESS
Less than 1
hour No effect
More than
11% 12%
4 hours Good Very Bad
24% 1% 26%

3-4 hours 2-3 hours

29% 36%
Bad
61%
 IMPACT OF DEMONETIZATION ON IMPACT OF DEMONETIZATION ON
MONTHLY INCOME AVAILABILITY/PURCHASE OF DAILY
HOUSEHOLD NEEDS

Can't Say
No effect
17% Very bad
17%
Good 24%
0%

No change
19%
Decreased
63%
Increased
1%
Bad
59%
 NO. OF CASHLESS TRANSACTIONS PER NO. OF CASHLESS TRANSACTIONS PER
MONTH DURING DEMONETIZATION MONTH DURING DEMONETIZATION
More than NOW
5 to 10 10 More than
2% 1% 5 to 10 10
5% 0%
1 to 5 1 to 5
30% 21%

Not a
single
67% Not a
single
74%
 MEANS OF CASHLESS TRANSACTION According to you which would have
been main objective of
demonetization?
Others
80%
Paytm24%
7% 70%

60%

50%

40%
71%
BHIM 30%
0% DebitCard
20%
69%
10% 14%
5% 6% 4%
0%
Curb black Move towards To eliminate Curb Other
Money cashless fake Currency Terrorist and
economy Notes Naxalite
activities
 IMPLEMENTATION OF DO YOU KNOW HOW MUCH
DEMONETIZATION CURRENCY NOTES ARE RETURN TO
Very Good
RBI IN DEMONETIZATION?
Very Bad
15% 2% Good
19%

99% Notes
Don't Know 37%
43%

Bad
64% 90% Notes
80% Notes 12%
8%
 WHO WAS SEVERELY AFFECTED BY DEMONETIZATION?

Rich with black

money
26%

Poor
Rich
53%
3%

Middle income group

18%
PERCEPTION ON EFFECT OF
DEMONETIZATION ON INDIA’S PROGRESS
THEN NOW

Very Bad Very Good Very Bad Very Good

6% 11% 4% 7%
Bad
21%
Bad
40%

Good
49%

Good
62%
FINDINGS
• Finally public opinion about demonetization was asked. 12%
respondents told that demonetization was very good decision, 17%
think that it was very bad decision and unnecessary. 16% respondents
think that it will be too early to be judgmental on demonetization
decision while majority 55% people expressed that objectives of
demonetization were very good but implementation was bad.
• Rural economy depends on Cash and cooperative banks, debit or credit
cards, net banking and online transactions which are popular in Urban
India are non-existent in the rural part.
• So demonetization created havoc for the agricultural and cottage
industries.
CONCLUSION
• Every honest Indian wants to curb black money. But it is not possible to
achieve this goal by single step of demonetization.
• Because most of the black money is invested in the form of land,
constructions or gold or kept abroad like Swiss bank.
• Out of all black money only 4% of the total amount of black money is in
cash on which taxes are not being paid.
• Not all black money is in cash, and not all cash is black money.
• Those who held large quantities of black money seem to have found
creative ways to launder it, rather than destroying it to avoid attracting
the taxman’s attention, as the government expected.
ACHCHA CHALTA
HOON DUAAON MEIN
YAAD RAKHNA!!!!