DEMONETIZATION AND ITS IMPACT ON FINANCIAL SECTORS

SUMANT KAUSHIK

Abstract


Demonetization has had multifarious effects on the financial health of our country as two largest bank notes (Rs.500 and Rs.1000) were pulled out from circulation which accounted for 86.9% of cash economy. To a great extent it affected finance sector from an evidence of liquidity boost to accumulation of stressed assets(NPA’s) and short-run slowdown in credit demands with an accelerated digitization of retail payments, further to many corners of central banking operations.

The present study is made out of Secondary sources and available literature on post-demonetization. It analyze the series of effects of demonetization on financial sector with the effectiveness of efforts made by government to neutralize the impacts of this monetary crunch.


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ISSN : 2251-1555