A Study on Impact of Demonetization on Increased Use of Plastic Money- with Special Reference to Coimbatore District

Abstract

Demonetization we mean the act of  taking away the  authorization of paper and coin money as “Legal Tender”. It means that old currencies including notes and coins must be restored with new ones or completely new currency can be introduced like Rs. 2000 note which was not available earlier. This was a  gigantic and  precise decision taken as some  opportunely said it is a “Masterstroke” or a “Surgical Attack” on black money. As a result plenty of citizens in the country has shifted from hard cash to plastic money(Debit/credit cards).There has been a acceleration in the use of credit and debit cards succeeding the demonetization initiative. There is a huge future for use of plastic money in India. Distinct from providing strengthened convenience to the customers, plastic money can also ensure transaction secrecy and integrity to the customers. There have been issues of concern with circumstances such as the duplication of credit cards, robbery of ATM cards. For the growth of plastic cards in the Indian market more improved customer service security should be provided by plastic card issuers. This study mainly concentrates on impact of demonetization on increased use of plastic money during the pre and post demonetization period. The sample selected consisted of consumers including students, working professionals, government officials, home makers and senior citizens.