ABSTRACT

The objective of this study is to investigate about the impact of the demonetization over the banking sector. The study covers the banking sectors of specially veraval city. For the study I had selected total 13 banks of veraval city. Further for the study aspect I had chosen the structured questioner, which was filled up by bank employees. To grab the knowledge I asked them questions related to the black money, online banking, accounts of banks which highly affected, Government’s preparation for post demonetization situation as well as customer’s preference to keep money either at home or bank. By analysing the data collected almost 55% employees agreed with the view of positive impact of demonetization. Highly affected accounts were saving a/c and current account. Almost 51% employees had opinion that customers are moving towards online banking. 52% employees said black money which is in form of cash has been curbed by government. 69% employees were positive about customer behaviour on keeping money at bank. By seeing all areas mentioned above I can say that as compare to previous two demonetization, this one is successful. Still as compare to short terms, more positive impacts can be seen in long term. Though this paper is only having data of veraval city banks it can be used for further analysis in this area.

KEY WORDS: Corruption, banks, black money, post demonetization effect, online banking, veraval