IMPACT OF DEMONETIZATION ON FINANCIAL INCLUSION IN INDIA: A STUDY WITH EVIDENCE OF EMERGING DIGITAL FINANCIAL SERVICES
This paper seeks to analyze the immediate impact of demonization drive on digital financial inclusion in India which was declared on 8th November 2016. Thereafter, digital financial inclusion got wide momentum in terms of accessibility and usability than ever before. Thus, the study is ascertained to explore the emerging trends in the financial sector for financial inclusion in India followed by discussions on prospects and challenges of financial technology (Fintech) that occurred due to demonetization ordinance. So far none of the studies was performed in analytical way to explore the impact of new demonetization ordinance on digital financial inclusion. Hence, this approach is the first dimension in this respect with the discussions on emerging tech-based financial services. The study encompasses the analysis of financial inclusion parameters like opening Bank account, No Frills Account (NFA) and Rupay Debit Card with the comparison of pre and Post periods of demonetization. Paired Sample t-test was applied to test the hypotheses and results show that those three parameters do not have a significant impact on financial inclusion due to demonetization except in the distribution of Rupay Debit card provided by Public sector banks.
JEL Classification: E60, G21, G28, P00.
Key words: Digital Financial Inclusion, Demonetization, No Frills Accounts (NFA), Rupay Debit Cards, Payment Banks
|Journal||International Journal of Management (IJM)|