Impact of Demonetisation on Cashless Economy

Abstract

The new approach of cash less economy results more shops and venues as economic and hassle freeways of payment. Even banks have tried and built banking apps to make customers' transactions easier, and each transaction will have its own account, making their customers' day-to-day payments simple. The RBI and political system have also made attempts to limit the cash in the economy by pushing digital payment methods such as prepaid instruments and cards. The major goal of the reserve bank is to eliminate cash transactions to a certain extent and to move the country toward a cashless society by encouraging the use of digital modes of payment to execute transactions. Banks charge a fee for their services. For services provided via the internet, the charge may vary depending on the bank.A sample survey of 80 respondents was undertaken at Kannur Corporation, Kerala to study the impact of demonetization. Most of them felt that cashless transaction is a must to ensure smooth online payments and other bank transactions. Apart from youth, other are having less awareness about cashless transaction. This study has been conducted by studying various socio-demographic variables and paired t –test is performed to analyze the usage of cashless transactions  before and after demonetization.