Cyber Banking : A Panacea for Entrenchment of Economic Governance in the Context of Demonetization

Demonetization drive of Nov. 8, 2016 led to nullification of 86% of India's currency that was in circulation. It was aimed at weeding out the black market's cash supply and counterfeit notes that are disrupting the socio-politico-economic landscape of the world's second largest emerging market. Post-Demonetization there is 400 to 1000 percent surge in Digital transactions as reflected from the augmented E-wallet transactions from 17 lakh to 63 lakh per day valued at around Rs. 191 Crores per day, a significant rise from previous Rs. 52 Crores per day. Rupay transactions have also increased from 3.85 lakh to 16 lakh per day with the value of transactions increasing from 39.17 Crores to 236 Crores (Law and IT Minister Ravi Shankar Prasad, PTI, Dec 9, 2016). Besides, Indian economy is trending towards cashless society as even small vendors and rural populace switch to e-wallet transactions. This study was undertaken to examine the efficacy of cyber banking in fortifying economic Governance in India post-demonetization, through sample survey technique. A Questionnaire was administered to around 50 users who generally involve in digital transactions. Their opinion was sought keeping in perspective pre- and post-demonetization trends in digital transactions. The results of the study reflect a significant surge in digital transactions post-demonetization yielding remarkable benefits towards economic governance in terms of quick and hassle free transactions at low cost and reduced cycle time of transactions