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By -: Daniel.S.

Maddipati
ID-:14321012
Introduction
Demonetization is the act of stripping
a currency unit of its status as legal
tender Demonetization is necessary
whenever there is a change of
national currency. The old unit of
currency must be retired and
replaced with a new currency unit
There are multiple reasons why nations
demonetize their local units of currency.
Some reasons include combating
inflation, to combat corruption, and to
discourage a cash system. The process
of demonetization involves either
introducing new notes or coins of the
same currency or completely replacing
the old currency with new currency.
In 2016, the Indian government decided
to demonetize the 500- and 1000- rupee
notes, the two biggest denomination
notes. These notes accounted for 86%
of the countrys cash supply. The
governments goal was to eradicate
counterfeit currency, fight tax evasion,
eliminate black money gotten from
money laundering and terrorist financing
activities, and promote a cashless
economy.
The Indian government had demonetized
bank notes on two prior occasionsonce
in 1946 and then again in 1978and in
both cases, the goal was to combat tax
evasion by "black money" held outside the
formal economic system. In 1946, the pre-
independence government hoped
demonetization would penalize Indian
businesses that were concealing the
fortunes amassed supplying the Allies in
World War II. In 1978, the Janata
party coalition government demonetized
banknotes of 1000, 5000 and 10,000
rupees, again in the hopes of
curbing counterfeit money and black
money.
Objectives
To Study The Impact Of Demonetization
On General Public.
To Study The Background And Need Of
Demonetization.
To Study The Difficulties Faced By
General Public Due To Demonetization
Research Methodology
The research is to find out the effects of
Demonetization on the General public .This research
is done with the help of selecting a particular
questionnaire and sending it to the general public
which is the population and a sample has been
collected. This research is done with the sampling
technique and a sample size of 30 respondents is
selected as per the guidelines and the questionnaire
was responded by the whole sample selected. The
secondary data is collected with the help of the
questionnaire.
Population: The research consists of the general
public
Sample: The sample is selected with a size of 30
respondents
Reasons for Demonetization

ELIMINATING BLACK MONEY


CRUBING CORRUPTION
ERADICATING TERRORISM
NONE OF THE ABOVE.
Difficulty to Pay college fees

Yes
No
May be
Cheques
Cards
NEFT
Net banking

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
CONVIENCE OF THE NEW CURRENCY

YES
NO
MAY BE
FINDINGS

Here it was found in the survey that


67.7% of the respondents want this act
of demonetization for eliminating the
circulation of the black money.
Respondents found it very difficult to
do any kind of transaction and especially
in paying the college fees for the
students whereas most of them paid the
fees by various other means like
Cheques and Cards.
FINDINGS
Here it was found that 80% of the
respondents switched to other types of
payment options and the 20% used the
option of NET BANKING.
Respondents found the new currency
inconvenient to use.
CONCLUSION
In this Research it is come to a conclusion that
Demonetization had a great impact on the General
Public due to various reasons like lack of proper
planning prior to demonetization and insufficient
labor to provide the general public with the
required amenities. Demonetization also has a
greater impact on the growth of the economy.
Only few of the objectives of the demonetization
were fulfilled due to the loopholes in this economy
The General public had problem to spend their
own hard owned money for even the necessary
goods which was the main difficulty faced by the
people.