Demonetization currency. In 2016, the Indian government decided

Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change of national currency: The current form or forms of money is pulled from circulationand retired, often to be replaced with new notes or coins. Sometimes, a countrycompletely replaces the old currency with new currency.In 2016, the Indiangovernment decided to demonetize the 500- and 1000- rupee notes, the twobiggest denominations in its currency system; these notes accounted for 86% ofthe country’s circulating cash. With little warning, India’s Prime MinisterNarendra Modi announced to the citizenry on Nov. 8 that those notes wereworthless, effective immediately – and they had until the end of the year todeposit or exchange them for newly introduced 2000 rupee and 500 rupee bills.Chaos ensued in thecash-dependent economy (some 78% of all Indian customer transactions are incash), as long, snaking lines formed outside ATMs and banks, which had to shut downfor a day.

The new rupee notes have different specifications, including sizeand thickness, requiring re-calibration of ATMs: only 60% of the country’s200,000 ATMs were operational. Even those dispensing bills of lowerdenominations faced shortages. The government’s restriction on daily withdrawalamounts added to the misery, though a waiver on transaction fees did help a bit.Demonetizationrefers to an economic policy where a certain currency unit ceases to berecognized or used as a form of legal tender. In other words, a currencyunit still loses its legal tender status as a new one comes into circulation.Demonetization can also be referred to as the process of moving people from acash-based system to a cashless system (digital system).DigitalPayment is a means of making payments over anelectronic network such as the Internet. E-commerce sites use electronicpayment, where digital payment refers to paperless monetary transactions.

Digital payment has revolutionized the business processing by reducing thepaperwork, transaction costs, and labor cost. Being user friendly and lesstime-consuming than manual processing, it helps business organization to expandits market reach/expansion. Listed below are some of the modesof electronic payments ?·        Credit Card- Payment using creditcard is one of most common mode of digital payment. Credit card is smallplastic card with a unique number attached with an account. It has also amagnetic strip embedded in it which is used to read credit card via cardreaders. ·                 Debit card, like credit card, is a small plasticcard with a unique number mapped with the bank account number. It is requiredto have a bank account before getting a debit card from the bank.Smart Card·        Smart card is again similar to a credit card ora debit card in appearance, but it has a small microprocessor chip embedded init.

It has the capacity to store a customer’s work-related and/or personalinformation. Smart cards are also used to store money and the amount getsdeducted after every transaction.·                 E-Money transactions refer tosituation where payment is done over the network and the amount getstransferred from one financial body to another financial body without anyinvolvement of a middleman. E-money transactions are faster, convenient, andsave a lot of time.·                 Electronic Fund Transfer is a very popularelectronic payment method to transfer money from one bank account to anotherbank account. Accounts can be in the same bank or different banks. Fundtransfer can be done using ATM (Automated Teller Machine) or using a computer.

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Statement of problem:            The Government of India aimed thatthe India wants to become cashless economy to achieve the economic growthrapidly. For this the government used demonetization ofcurrency as an instrument, in this circumstance, overnight the policy of demonizationwas implemented in India. This makes an attack among the common people tosetback them financially immediately.

Due to end line, the people are rush tobank counter and ATM to use their money. They stay in queue to exchange theirold notes (500 and 1000 rupees). Though the urban people are able to come overthis problem at some extent, but the rural people are struggled extensively.Digital Payment a technique to streamline the effect of demonetarization in aright direction, as it is easy to implement in urban area but it is toodifficult in rural areas as its influenced by various factors such as social,cultural, economical, technological etc.. In this dimension, it is the need ofhour how far this demonetarization rooted in the rural areas and what factorsthat influence them adversely.

 Objectives:v  To study the Impact of Demonetization on Digital Paymentv   Analyzing the factorsinfluencing the Digital Payment in rural area.Hypothesis: Ho:There is no significantdifference between Age of the Respondent and Opinion about Digital Payment. Methodology: Sources of data: The Study is based on both Primary and Secondary Data.Primary data is collected through questionnaire, The Secondary Data fromdifferent journals, newspapers and relevant websiteshave been consulted in order to make the study an effective one.            Sampledesign: ASurvey was conducted in Panruti Taluk, in order to measure the Impact ofDigital Payment System. Using RandomSampling, the samples were selected for the study.Samplesize: The sample size ofthis analysis is selected from sampling unit.

The sample size is 150 respondentsin Panruti Taluk.  Statistical tools: Percentage analysis, Chi-Square test. Limitation of the study:The study was confinedonly in Panruti Taluk, so the respondents are limited for this study and thetime period for this study is limited.Review of the study:SadanandDhume Dec. 15, 2016, nearly six weeks after India abruptly scrappedhigh-denomination banknotes accounting for about 85% of its currency by value,the economy continue to slow. Poor and middle-class Indians are still sufferingfrom the shortage of new bills. But the most significant casualty may well bePrime Minister Narendra Modi’s reputation as a sound economic manager.

Alvares, Cliford (2009) in their reports “The problem regardingfake currency in India.” It is said that the country’s battle against fakecurrency is not getting easier and many fakes go undetected. It is also statedthat counterfeiters hitherto had restricted printing facilities which made iteasier to discover fakes.

Ashish Das, and Rakhi Agarwal, (2010) in their article “Cashless Payment Systemin India- A Roadmap” Cash as a mode of payment is an expensive proposition forthe Government. The country needs to move away from cash-based towards acashless (electronic) payment system. This will help reduce currency managementcost, track transactions, check tax avoidance / fraud etc.

, enhance financialinclusion and integrate the parallel economy with main stream. Jain, P.M (2006) in the article “E-payments and e-banking”that e- payments will be able to check black” An Analysis of Growth Pattern ofCashless Transaction System. Taking fullest advantage of technology, quickpayments and remittances will ensure optimal use of available funds for banks,financial institutions, business houses and common citizen of India. He alsopointed out the need for e-payments and modes of e-payments and communicationnetworks.

 Dataanalysis & interpretation:       Ho: There is no significant difference between Age of theRespondent and Opinion about E-Payment system Age/Opinion   Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total below 19 years 1 6 8 0 0 15 19-26 years 1 12 35 0 0 48 26-33 years 0 10 28 0 0 38 33-40 years 0 10 29 0 0 39 above 40 years 2 0 8 0 0 10 Total 4 38 108 0 0 150  Degree of Freedom = (r-1)(c-1) = (5-1) (5-1) = (4) (4) = 16Level of Significant: 5% Table value = 26.2962Calculated value =18.9699 Inference:            Inthe Chi Square test, the calculated value is 18.9699 and the table value is 26.2962.

Then The Calculated value is less than theTable value, so the Null Hypothesis is accepted. Therefore the Result is there is no significantdifference between Age of the Respondent and Opinion about Digital Payment. Findings:Ø 63%of respondents are male, 37% of respondent are female, using Digital Paymentwhile in Demonetization.

Ø 10%of respondent are below 19 years of age, 32% of respondents are between 19-26years of age, 25% of respondents are between 26-33 years of age, 26% ofrespondents are between 33-40 years of age, 7% of respondent are between above40 years of respondent are using E-Payment for payment in Demonetization. Ø Majorityof respondents (72%) are satisfied with the Digital Payment in Demonetization.Ø 61%of Respondents are satisfied with the Banking system for making payment inDemonetization.Ø 1%of Respondents are highly satisfied, 42% of respondents are satisfied, and 57%of respondents are neutral with the factors to make payment through DigitalPayment in demonetization.Ø Whilein Demonetization, 37% of respondents are prefer IPS (Immediate PaymentSystem), 29% of respondents are prefer E-Wallet, 13% of respondents are preferNEFT (National Electronic Fund Transfer), 11% o respondents are prefer Plasticmoney (Debit & Credit Card), 9% of respondents are prefer Net Banking, and1% of respondents are prefer Cheque for make payment easy and their convenientwith these instrument.Ø Majorityof respondents (54%) are satisfied with the instrument for making transactionin Digital Payment in Demonetization.Ø 99%of respondent are says yes that the entrepreneurs are provide E-Instrument forpayment.Ø  In Demonetization, 100% of respondent arebenefit with Digital Payment to make their transaction.

Ø Majorityof respondents (89%) are using their smart phones to make transaction inDigital Payment with their convenient.Suggestion:In the Demonetization the consumers areadopted new method for make their payment. Traditionally the consumers areprefer cash on delivery for  makingpayment, but in recent the consumer and common peoples are move to instrumentof Digital Payment for make payments. Hence, The Demonetization gives moreopportunities to payment and the technologies should be developed. Thedigitalized system is benefit to the consumer for payment. It’s should developthe rural areas.

 Conclusion:            Thisanalysis refers that the impact which are faced by the rural area people indemonetization. The respondents in rural area are struggled to face their dailyneeds and their emergencies to pay in demonetization. The educated respondent’spreferred digital payment in demonetization. The digital payment devices areincreased in demonetization to make their payment transaction.

But there is noawareness of the payment device in rural area.