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Has Demonetisation Pushed Digitalisation in India? Some Counter Evidences


Affiliations
1 School of Economics, University of Hyderabad, Telengana – 500046, India
2 Department of Humanities and Sciences, National Institute of Technology – Goa (NIT), Farmagudi, Ponda – 403401, Goa, India
 

India witnessed demonetisation in November 2016, when high value denomination notes of Rs. 500 and Rs. 1000 were withdrawn at a single stroke which extinguished about 86 percent of the total currency value in circulation. Demonetisation which aimed to curb black money, terror funding and counterfeiting at the first place, was later projected as the government’s push for digitalisation drive. In this paper, we analyse the effect of demonetisation on digital payments viz. debit card, point of sale transactions, and mobile transactions using an intervention analysis of time series. The findings of the Study negate the impact of demonetisation on digitalisation of the Indian economy.

Keywords

Demonetisation, Digitalisation, Intervention Analysis, Pulse-Function, Step-Function.
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Abstract Views: 311

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  • Has Demonetisation Pushed Digitalisation in India? Some Counter Evidences

Abstract Views: 311  |  PDF Views: 165

Authors

M. Nithin
School of Economics, University of Hyderabad, Telengana – 500046, India
P. Jijin
School of Economics, University of Hyderabad, Telengana – 500046, India
P. Baiju
Department of Humanities and Sciences, National Institute of Technology – Goa (NIT), Farmagudi, Ponda – 403401, Goa, India

Abstract


India witnessed demonetisation in November 2016, when high value denomination notes of Rs. 500 and Rs. 1000 were withdrawn at a single stroke which extinguished about 86 percent of the total currency value in circulation. Demonetisation which aimed to curb black money, terror funding and counterfeiting at the first place, was later projected as the government’s push for digitalisation drive. In this paper, we analyse the effect of demonetisation on digital payments viz. debit card, point of sale transactions, and mobile transactions using an intervention analysis of time series. The findings of the Study negate the impact of demonetisation on digitalisation of the Indian economy.

Keywords


Demonetisation, Digitalisation, Intervention Analysis, Pulse-Function, Step-Function.

References





DOI: https://doi.org/10.18311/jbt%2F2018%2F21170