Open AccessPOST DEMONETISATION EFFECT ON BANKING SECTOR, MICRO FINANCING INSTITUTIONS (MFI) AND JOB OPPORTUNITIES
Author(s) -
Kandarp Vidyasagar,
Rajiv Kr. Dwivedi
Publication year - 2020
Publication title -
international journal of management, innovation and entrepreneurial research
Language(s) - English
Resource type - Journals
ISSN - 2395-7662
DOI - 10.18510/ijmier.2020.624
Subject(s) - language change , business , finance , microfinance , private sector , government (linguistics) , poverty , revenue , cash , financial system , economics , economic growth , art , linguistics , philosophy , literature
Purpose of this study: This study aims at investigating the effect of demonetisation on the major sectors of the Indian economy i.e. banking sector, micro-financing sector, and employment sector. The government of India claims demonetisation as a tool to tackle inflation, black money, corruption, crime, and terror funding, while others call it harassment attitude.
Methodology: In this regard, a survey has been done to collect data from secondary sources. Further data were analysed graphically.
Results: The study reveals that there is marginal control over black money. The financial institution RBI suffered a loss due to excess of cash collection and failed to regulate the money properly. The employment sector is affected and a good number of people lost their jobs. Also, micro-financing institutions (MFI’s) business was affected worstly.
Social Implications/Applications: The MFIs and SMEs should be promoted and provided with legal financial assistance in order to compensate for their loss so that the 30% of citizens living below the poverty line get relief.
Novelty/Originality of this study: This combined study on various sectors gives a clear picture of the effects of post demonetisation in India which can help in predicting Indian economic conditions for the years to come.