Vol. 4, Issue 3, Part I (2018)

Demonetization had a huge resultant effect on Indian economy. Demonetization has helped in clean-up of illegal cash which will help turn around the economy in various fronts, it also helps in bringing more borrowing to the exchequer, improve inflation, increase GDP of the economy, revive investment and to reduce interest rates and to lower income tax rate. Business houses in India are going through a tough time mainly due to demonetization. Even though it is said that demonetization will help the economy in the long run but it has created a lot of fear in the minds of common man, traders, small business houses and unorganized sector which was largely dependent and running on cash basis. Even though demonetization is expected to have a positive impact in the years to come, business house fear for short run problems and reduced use of cash. It is said that demonetization has hampered the growth of the world’s fastest growing economy India. Hence by keeping this in mind, an effort has been made to analyze the perception of people about demonetization from various sectors of society. Sample size of 250 was randomly selected from Bangalore district to understand their perception about demonetization.