Researcher ORCID Identifier
https://orcid.org/0000-0002-5342-3467
Graduation Year
2023
Date of Submission
12-2022
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Andrew Finley
Terms of Use & License Information
Rights Information
2022 Ansh Vora
Abstract
On November 8, 2016, Narendra Modi, prime minister of India, tele-advertised the entire nation and announced that India's highest value banknotes, the 500 and 1000 rupee “Rs” notes would be demonetized and taken out of circulation, effective midnight. Modi stated that this is an effort to reduce the large economy of black money, transition India into a digital economy, abolish funding of terrorist groups and illicit circulation of counterfeit notes. In this study, I choose to analyze the impact of demonetization on two digital payment methods - Prepaid Payment Instruments, “PPI” and Mobile Banking. The data used in this study is monthly data from the Reserve Bank of India’s “RBI Bulletin” for a time period of 7 years from October 2013 - October 2021. I use an Interrupted Time Series “ITS” model to study and compare the stability and trends for 4 variables: volume of PPI transactions, value of PPI transactions, volume of Mobile Banking transactions and value of Mobile Banking transactions. I find that there has been an increasing trend in the 4 variables being analyzed over the time period. Additionally, I find that for the time-period being analyzed, between PPI and Mobile Banking, PPI observed higher volume trends in the non-event period after demonetization whereas Mobile Banking saw greater value trends compared to PPI in the non-event period after demonetization.
Recommended Citation
Vora, Ansh, "Did demonetization have a bigger impact on PPIs (prepaid payment instruments) or Mobile Banking in India?" (2023). CMC Senior Theses. 3196.
https://scholarship.claremont.edu/cmc_theses/3196
Included in
Finance Commons, Growth and Development Commons, Income Distribution Commons, International Economics Commons, Macroeconomics Commons