Researcher ORCID Identifier

Graduation Year


Date of Submission


Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Andrew Finley

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2022 Ansh Vora


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.