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Vinay Kandpal
Rajat Mehrotra
Sumeet Gupta


Demonetization, Digital, Cash Retailers, Financial, intermediaries, Inclusion


Purpose of Study: The paper aims to assess the new face of retailing after demonetization with specific focus to the role of financial intermediaries and it also focuses on Long term solutions to drive the digital cash enabled retailing in India.

Methodology: This study used a questionnaire for data collection among 250 retailers in Uttarakhand, India. The questionnaire was later on analyzed using SPSS. Qualitative data was gathered from the interview with the officials from 100 financial intermediaries from banks.

Findings: The Indian retail market has been fostered by the cash dealings. The step of demonetization caught the black marketers, retailers and common people by surprise. The move was supported by the majority of people despite facing difficulties.  After the demonetization, people started using the adoption of different forms of digital payment options. The trade in the market was affected and the retail sales witnessed a severe dip. The market is recovering but the actual recovery will depend on devising the substitute for the cash payments at all levels of retailers.

Social implications: Financial inclusion is important for inclusive growth and bank to have a crucial role to play in financial literacy campaigns and should ensure that those deprived sections that come to exchange their old notes are properly taken care of. Banks could make unbanked people aware about the financial instruments available with banks and the importance of saving and putting their money in these instruments. This step would further help the economy move from unorganized to organized sector.

The originality of Study: This study is original and first of its kind conducted in Uttarakhand, India.


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