Progress in Digital Banking After Demonetization : Some Evidence

This paper aims to demonstrate the optimization of digital banking after demonetization of a series of currency notes denominated in 500 and 1,000 in India. The government initiated the demonetization process on November 8, 2016. India is a developing country and Indian banks have been offering digital banking service to its customers since 2008, but it is also a fact that the frequency to optimize this service was very limited and customers were not availing this service. Mostly, customers from metro and urban cities used the digital banking option for transactions. After demonetization, the customers have started to optimize this service due to less transaction time, easy to operate at any time at any place and for proper record of all the transactions digitally. This study examines whether there is any significant change in the utilization of digital banking services in India post demonetization. This is a descriptive study and the data for research has been taken from November 2015 to October 2017, i.e., one year before demonetization and one year after demonetization, and paired sample t-test has been used for analysis