Journal Press India^®

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Purpose: The objectives of the study were to analyze the perceived benefits of demonetization and identify the major factors determining the attitude of people towards demonetization.

Design/Methodology/Approach: Primary data have been used for the present research and have been collected through a pre-tested structured questionnaire. Questionnaire consisted of statements on a five point Likert scale ranging from ‘Strongly Agree’ to ‘Strongly Disagree’ measuring perceived benefits of demonetization. A sample of 190 respondents (mostly from salaried class or professionals) was selected from the state of Punjab through judgmental sampling technique.

Findings: Analytical tools like Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) have been deployed to analyze the data and draw inferences. Reliability and validity of the scale were checked through CFA. The findings revealed financial inclusion, improved national environment, less cash economy, and improved consumption & investment pattern as main benefits of demonetization perceived by respondents. The most influential factor determining positive attitude towards demonetization is less cash economy and financial inclusion.

Research Limitations: As the study has been conducted in Punjab state. It has limited implications for the rest of the states of India.

Practical Implications: The results of the study can be very helpful for the policy makers as it has been revealed through the study that people don’t perceive improved national environment as perceived benefit of demonetization. Demonetization was induced in economy to improve national environment by targeting terrorism, corruption, reducing black money, fake currency etc. But as per the results, these benefits have not been perceived by the public. Therefore, better strategies must be developed to improve national environment.

Originality/Value: This study is probably the first to empirically analyse the benefits of demonetization perceived by people.

Keywords

Demonetization, Perception, Attitude, Benefits.

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