‘Retail Traders’ Perception on Demonetiza...

‘Retail Traders’ Perception on Demonetization’

Author Name : Arun Raghu Babu

ABSTRACT

Honourable Prime Minister Narendra Modi led Government's move to demonetize the currency notes of the value of 500 and 1000 on 8 November 2016, as claimed by the government, was made to curtail the shadow economy and crack down on the use of counterfeit cash to fund illegal activities and terrorism as well to expose the black money holders in the country. Other intentions were to bring more people in the tax bracket, increase government revenue, reduce individual tax burden and encourage digital transactions in order to ensure transparency in transactions. Although the move might signify a healthy establishment for the country in the future, one can't help but admit the immediate impact or the consequences it has had on various sectors within the country. The retail sector is prominent among them.

Given the high propensity of Indians to deal in cash, the immediate aftermath of demonetization has caused considerable inconvenience among retailers and their customers. Small traders have been affected the most as they faced a considerable decrease in sales. Consumers in turn postponed their spending due to non- availability of cash. Many of these small retailers are not equipped enough to make provisions of digital payments for their customers, and for this reason they have to go through lot of hardships. As the retail traders form a large chunk in the distribution channel, the present study has been initiated and an effort is made through a survey to analyze their perception towards positive and negative aspects of the demonetization that influenced their businesses.