Impact of Usage of Plastic Money in Rural India

(A study with reference to Rural Areas in Kancheepuram District of Tamil Nadu)

Authors

  • S. Hemalatha
  • S. Ganapathy

Abstract

The Government of India demonetized Rs. 500 and Rs. 1000 rupees notes of Mahatma Gandhi series on 8th November 2016. 86% of cash supply was accounted by these notes. The demonetization goals are undermining counterfeiters, tackling corruption and punishing holders of black money. Prime Minister of India Mr. NarendraModi indicated that holding of unwanted cash in hand is directly linked to the level of corruption. Government wanted to reduce the cash in hand of the people. Though the intention of Government was good, it affected every Indian. It affected agriculture sector too. Farmers especially marginal farmers are affected by the decision of the country as they depend too much on cash dealings. . Demonetarization changed the usage pattern of farmers. They started using plastic money like debit card, credit card, kisan card etc., Therefore , research to enrich current knowledge about the plastic card usage in rural India is required. Thus, the objective of the study is to identify the impact of adoption of plastic money in rural India. 300 samples were collected. The respondents are marginal farmers of Navalur village, kancheepuram district, Tamil Nadu. The study found that though farmers holds plastic money with them, they prefer to use only cash for all transactions. Cash available at any time any where is the major benefit to farmers when they use plastic money. No trust is the major challenges for marginal farmers faced in adoption of plastic money.

Downloads

Published

2020-04-09

Issue

Section

Articles