Online ISSN: 2515-8260

Keywords : Cashless Economy

The Impact Of Demonetization On Small And Medium Businesses In India.

Mamta Singh,Puja Sahani,Khushboo,Rounak Afsha,Ms. Shinki K Pandey .

European Journal of Molecular & Clinical Medicine, 2023, Volume 10, Issue 1, Pages 636-644

The major objective of this research is to analyse the effect on Indian small and medium-sized businesses of the country's cashless monetary policy. The government is thrilled with the demonetization of high-denomination currencies. One of the most sustainable and ecologically beneficial ways to do business in the future is to shift from a cash-based economy to one that relies increasingly on electronic payment systems. As a result of the country's recent decision to demonetize its currency, the general public will be forced to perform all of their monetary transactions online. Demonetization's quick adoption harmed the MSME sector, which likes to conduct its business in the traditional manner. To be successful in a cashless era, this company will need tight regulatory oversight. Economic changes would have a detrimental impact on the economy if MSMEs were not present. An electronic monetary philosophy is a result of both dealers and customers using digital infrastructure more often. The study's results demonstrate how a cashless society would impact India's small and medium-sized businesses. SMBs may confront difficulties in a cashless environment, as well as alternative solutions, according to the article. The outcomes of this inquiry were analysed using secondary data and simple statistical approaches.