ABSTRACT

This paper is about the high impact jolt, the Banking sector faced during the Demonetization drive initiated by our hon’ble PM Narendra Modi on the 8th November,2016. Banking sector is one of the most leading sectors in India-Urban,Rural or Punjab. To control parallel economy, the drive was initiated as a result there was a ban on notes of Rs500& Rs1000 denomination as a legal tender. The Indian Economy faced a huge cash crunch. Going cashless, the population did not have money to buy their daily need goods. The stores had stopped accepting the banned currency and the new currency was hardly in circulation. There were massive ques in front of banks with waiting period for each customer was somewhere around 1-2 hours. This paper shows the high-level dependency of the population on Mobile Banking/ E Banking during this phase. The supplies were affected, the suppliers were affected, the consumers were affected and even the transporters were affected. There was hardly any possibility to make purchases with Rs500 and Rs1000.

Keywords: Demonetization, Cash Crunch, E-Banking, Parallel Economy