Implications of Demonetization on e-banking Services-A case study of Jamakhandi Taluka in Bagalakot District of Karnataka State

Suvarna Varadai; Dr. B. S. Navi

Volume : VI, Issue : XII, December - 2017

Implications of Demonetization on e-banking Services-A case study of Jamakhandi Taluka in Bagalakot District of Karnataka State

Suvarna Varadai, Dr. B. S. Navi

Abstract :

The move by the government to demonetize Rs.500 and Rs.1000 notes by replacing them with new Rs.500 and Rs.2000 notes has taken the country with surprise. This measure has been taken by the PM in an attempt to address the resolve against corruption, black money and counterfeit notes. From an equity market perspective, this move would be positive for sectors like Banking and Infrastructure in the medium to long term. This could be negative for sectors like Consumer Durables, Luxury items, Gems and Jewellery, Real Estate and allied sectors, in the near to medium term. This move can lead to improved tax compliance, better fiscal balance, lower inflation, lower corruption, complete elimination of fake currency and another stepping stone for sustained economic growth in the longer term. At an aggregate level, this move is expected to cleanse the formal economic system and is to tackle the menace of black money, corruption, terror funding and fake currency and will benefit the economy in the medium- to long-run, but, the question as to how the creation of black money in the future will be prevented still remains unanswered. In this paper, we try to emphasize the move of demonetization with respect to its reasons and the probable consequences of this decision on various economic variables and entities in general and implications of this process on e-banking facilities in Jamakhandi taluka of Bagalakot district in particular.

This study based upon the both primary and secondary sources of data, responses collected with the help of the modular questionnaire from the customers of various banks working in the study area and the required secondary data were sourced from various reports, books, periodicals, journals and websites. This paper is empirical in nature and is regarding post effects of demonetization. This is a very welcome move by the government and which has taken the black money hoarders with surprise.