DEMONETIZATION: A STUDY OF PROBLEMS FACED BY PEOPLE AND THEIR PERCEPTION ABOUT ITS IMPACT ON THE INDIAN ECONOMY

The Government of India on 8th November 2016 took a very important economic decision to demonetize currency notes of 500 and 1000 denominations. The rationale behind the decision was to curb black money and deal with corruption. This is not the first time when the Indian government had demonetized the high value currency notes. Demonetization for the first time was implemented in 1946 and then in 1978. This paper attempts to identify perception of the common people about the impact of demonetization on the Indian economy as well as the problems faced by them. The study is with reference to people in Pune district and is based on a sample of 80 respondents. The research is based on both primary and secondary data. Questionnaire method is used to collect primary data and is based on Random Sampling Method. The research indicates that people faced lot of problems due to demonetization in while travelling, shopping, doing banking transactions and also had to curtail day to day requirements. But, it was observed that despite of the problems faced, 70% of the respondents appreciated the government’s move to curve black money,corruption and reduce fake currency circulation, and finance to the terrorist activity through demonetization of high value currency notes.