“A Study on Consequences of Demonetization on Banking Sector with Reference to Banks in Ahmednagar District”

Abstract

The biggest decision by Prime Minister of India Mr.Narendra Modi was taken on the evening of 8^th Nov 2016 by ceasing the 500 and 1000 rupees notes from 9^th Nov 2016. Demonetization is the act of stripping a currency unit of its status as legal tender. It is a process of removing a currency from general usage or circulation of money in a country. Demonetization is a tool to fight with inflation, black money corpus, corruption and crime content, dismantling a cash dependent economy and help trade. The policy of Government of India to ban on 500 rupees and 1000 rupees currency note becomes one of the critical decision. Demonetizations is not new curve to India, demonetization took twice before in the year 1946 and 1978 by then ruling Janata Party. Denomination has highly impacted on each and every corner of economic mechanism of India. Demonetization is the process of stripping a currency unit of its status as legal exchange. The role of banking sector is pivotal. But ever since demonetization took place banking sector highly affected during that span of time. State of confusion, overcrowded bank branches in every belt of India, stoppage of Automated Teller Machine (ATM) function, wait and watch situation, complete stagnancy in the transaction etc these are the basic trauma faced by account holders on a larger scale with faster pace..