Open AccessImpact of 2016th-year Demonetization on Banks in India
Author(s) -
Vinay Chandra,
Surabhi Srivastava,
Surabhi Srivastava
Publication year - 2021
Publication title -
international journal of engineering and management research
Language(s) - English
Resource type - Journals
eISSN - 2394-6962
pISSN - 2250-0758
DOI - 10.31033/ijemr.11.4.19
Subject(s) - legal tender , currency , circulation (fluid dynamics) , earnings , government (linguistics) , banknote , financial system , language change , business , economics , commerce , economy , finance , monetary economics , engineering , macroeconomics , art , linguistics , philosophy , literature , aerospace engineering
Demonetization is a monetary step in which a particular series of banknotes render invalid either by the government or by issuing authority of the nation to eliminate the undeclared income. It is a process in which certain units of currency notes will not be remains as legal tender. On November 8, 2016, government demonetize old ? 500 and ?1000 banknotes which were 86% (15.41) trillion in total circulation to curb the black money, wipe off the fake currency, and make a halt in corruption. This move shook all the corners of the economy in which the banking sector was significantly affected. It gave a positive impact on the financial statements of banks, as the deposits were increased, the net earnings of the bank were also increase. Therefore, the study has been conducted to throw the light on the impact of demonetization on banks, primary data have been collected for the of Pre and Post demonetization period.