Changing Currency Discontinues To be continues

WHAT IS DEMONETIZATION  Demonetization is the withdrawal of particular form of currency from circulation.  It is a process by which is a series of currency will not be legal tender.  The series of currency will not acceptable as a valid currency.

BRIEF INTRODUCTION OF RECENT DEMONETIZATION On the evening of 8 th November 2016, Indian prime minister Mr. Narendra Modi announced a sudden demonetization of ₨.500 and Rs.1000 rupees notes. Instead of RBI Governor Urjit Patel, surprisingly Prime Minister announced the news of demonetization that these banknotes would not be legal tender after midnight of 8 th November. Means the high values will not be legal for transaction. Although the old notes can be exchange till 31 st December there were set an upper limit of cash withdrawals from bank is Rs.10,000 per day (up to Rs. 20,000 per week) per account and from ATM Rs.2000 per day per account from 10 to 13 November which is changed from 14 Nov. to Rs.24,000 per week from bank and Rs.25,000 per day from ATM per account till 31 st Dec. although a need person can withdraw with valid reason.

History of Demonetization in India and World In India, there were many occasion when high demonetization banknotes were demonetized. RBI printed the highest demonetization notes of Rs.10,000 in After that government demonetize Rs.1,000 and higher denomination banknotes in Higher demonetized banknotes (Rs.1,000, Rs.5,000, Rs.10,000) reintroduced in 1954 and all of them were demonetized in 1978 to curb unaccounted money. First time Rs.5000 banknotes in 1987 in order to restrain over increasing banknotes, due to inflation and in 2000 again Rs.1000 banknotes came back in circulation in order to contain the volume of bank notes in circulation, due to inflation. However, Rs.2,000 banknotes were first time introduced in Nov

List of countries in the world that had done Demonetization Country NameYearObjectiveResults Nigeria1984To fix, debt burdened and inflation ridden economy Economy collapsed Soviet Union1991Fight against unearned income, smuggling and corruption The economy system of the USSR was essentially crushed Ghana1982To control black moneyPeople turned to foreign Myanmar1987To curb black moneyLed political dispute and died thousands of people North Korea2010To lower down the market of black money Miserably failed Zimbabwe2010Sliding out from HyperinflationFailed Australia1996To the curb black money crisis and improve security features on the notes Success Britain1971To bring uniformity in currencyFailed in other countries except Britain failed Zaire1990A plan to withdraw obsolescent currency from the system Failed USA1969Due to black moneySuccess Pakistan2015To get rid from black money, counterfeit currency Messed Up Germany1923Due to high domestic pricesInflation

Scope of the study of Demonetization  This study will helpful for the citizen of India, Indian government, business and the Indian customer, through this study government will be able to know about the future conditions of the economy.  This study will help to the government fro policy making to the betterment of the economy.  Businessman can also take the wise decision so that he will be able to generate more revenue and can earn the profit in the actual market scenario.

Effectiveness of demonetization WWhy India demonetized only 500 and 1000 currency notes: RBI’s report the 500 and 1000 rupees notes approximately 86% value in the circulation. So government decides to remove this huge amount of money from the market. And the maximum fake currncy notes exist in the from of 500 and IIncreased debit and credit card transactions: After the advent of Demonetization there has been a multi fold increase in Debit Cards and Credit Cards. The Banking system has also become proactive in installing POS Machines

IMPACT OF DEMONETIZATION ON BANKING SECTOR Demonetization is a tool to battle Inflation, Black Money, Corruption and Crime, discourage a cash dependent economy and help trade. Its policy of the government by banning Rs. 500 and Rs.1000 currency notes has influenced all almost all the corner of the economy.

Opening of Jan Dhan Account Post-demonetisation, 23.3 million new accounts were opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY), bulk of which (80 per cent) were with public sector banks. Of the new Jan Dhan accounts opened, 53.6 per cent were in urban areas and 46.4 per cent in rural areas. Deposits under PMJDY accounts increased significantly post demonetisation. The total balance in PMJDY deposit accounts peaked at Rs. 746 billion as on December 7, 2016 from Rs. 456 billion as on November 9, an increase of 63.6 per cent. As there were reports regarding the use of these accounts to convert black money into white, the Government issued a warning against the misuse of such accounts.

E-banking Online banking is also know as internet banking (or) virtual banking is an electronic payment any uses with use of personal computer and a browser can get connect to his banks website to perform any of the virtual banking function the term electronic banking covers both computer an mobile. When the customer decide to make payment through E-banking.

How demonetization effect on electronic payment The Indian government wants to go cashless transaction. Due to that online transaction where done through use of debit and credit cards. They are many options to cashless transaction available in India they are. 1.Plastic money 2.Aadhaar card 3.E-wallet 4.UPI (unified payment interface)

Features of E-banking  Easy electronic fund transfer facility.  E-Banking brings door step service.  It can be to view balance of account and statements.  It’s a better efficiency in CRM( Customer Relationship Management)  Receive e-Bills and reminders through BillPay.

Benefits of using E-banking Benefits to customer  E banking helps as a less waiting time.  It easy and convenient to use.  It provides 24*7 service.  E banking save time.  It unable t help make transaction at any time of the day and as many times as you want. Benefits to bank  It improve customer relation with banks.  It helps to cost effective to increase profitability.  E-banking helps as a reduction of burden to branch banking.

The impact of demonetization on the common man  Low-income people have been impacted as their payments are delayed.  -Some people may commit suicide.  -Cashiers and bankers will get due respect in society.  -Marriages to become cheap. Death of dowry.  -All medicines in white money.  -Big blow to gambling.  -Death of drug mafia and terror networks.  -People now know moral status of their peers and neighbors better.