Impact of Demonetization on Performance of Banks (With Special Reference to Uttarakhand)

Abstract

Demonetization is the strongest policy that  is used against many illegal elements such as corruption  and inflation to reform the economy. The concept of  Demonetization is not new almost across the globe has  adopted Demonization to upgrade their financial system.  India adopted the Demonetization three times: first in  January 12, 1946, and second January 16, 1978. But the  term Demonetization became well known on November 8,  2016 when P.M. Narendra Modi suddenly demonetized the  Rs. 500 and Rs.1000 bank notes of Mahatma Gandhi series  with the prime objective to curb the black money and  counterfiet currency. This monetary step shaked each  segment of economy in which banking performance was  significantly affected. Their depositposition, Advance  Policy, NPAs and Liquidity were impacted at some or large  scale. Therefore, the present study has analysed the impact  of demonetization on the performance of banks (with  special reference to Uttarakhand) and found that there is no  significant impact of demonetization on the overall  performance of banks in Uttarakhand State.