Impact of Demonetisation on Green Banking

Table of contents

1. Introduction

emonetization is a splendid step that has been taken by our present Prime Minister Mr. Narendra Modi by cancelling the 500 and 1000 rupees notes throughout the India on Nov 8, 2016. It was not the first time when demonetization taken place, this was done in 1946 and 1978, as well. By taking this great step our Prime minister has given more preference to the green banking products. Demonetization is a great concept which comes into existence to make green banking more successful. This action lead to a powerful reaction on the online banking which gives more preference to green banking. So demonetization is beneficial to create awareness among the rural and urban citizens with regard to the usage of green banking services. Thus demonetization provided helping hand to making green banking more popular. Demonetization has taken a place for the purpose of removing black money throughout the India, So demonetization plays a significant role in the implementation of green banking strategy.

2. II.

3. Concept of Green Banking

Green banking encourages the online transactions by reducing the carbon footprint from the regular banking activities. It promotes healthy environmental conditions by protecting our natural resources. In other words green banking means promoting environmental friendly practices in a regular banking activities and it's also called as sustainable banking. Its main objective is to safeguard our natural resources by reducing quality of paper work. It involves online banking, ATM, green credit card etc.

4. III.

5. Objectives of the Study

? To study how demonetization leads to green banking ? To know the usage of green banking after demonetization in Bhatkal Taluq. ? To suggest measures to increase the coverage of green banking.

IV.

6. Research Methodology

The required data for the study is collected from primary as well as secondary data. Primary data is collected from using 120 respondents through direct interviews and using questionnaire and the secondary data is collected from journals, articles and websites. For collection of primary data respondents are selected based on the random sampling technique.

V.

7. Limitations of Green Banking

1. The findings and recommendations of this study collected based on limited coverage only. 2. As demonetization is a recent decision, the reactions on green banking cannot be accurately measured.

VI.

8. Data Analysis

The current study is related to "Impact of Demonetization on green banking". For this study Primary data is collected through questionnaire and direct interview from 120 respondents. That was analyzed in order to draw certain conclusion in the following manner.

9. Interpretation:

The above table defines the demographic profile of the respondents who are co-operated for this study. On the basis of above information is made analysis.

10. Interpretation:

From the above table it is cleared that majority of the respondents that is 55 respondents are aware of the green banking services before demonetization and 65 respondents do not have any particular information regarding green banking services. Interpretation:

From the above table we can see that majority of the respondents that is 70 respondents are using Debit card, 22 are using Credit card, 48 respondents are using Mobile banking, 42 are using Net banking, 56 are using EFT services, and unexpectedly 11 respondents are not using any of the above services of green banking. It says that before demonetization the percentage of using services are very low.

11. Interpretation:

From the above analysis we can see that there is a rise in using Debit card from 70 to 108, Credit card from 22 to25, Mobile banking 48 to 96, Net banking from 42 to 59, EFT from 56 to 63 respondents. So we say that there is a good effect of demonetization on green banking services. The number of respondents can be increased by spreading awareness of green banking and user friendly technology.

12. Interpretation:

Above table is defines that 62.5% of the respondents says that the banks are taking sufficient initiatives towards the awareness of the green banking services and 37.5% of the respondents feel that the banks are not taking sufficient initiatives towards the services of green banking.

13. Interpretation:

From the above table it is clear that 81.66% of respondents says that green banking would make banking more successful and 18.34% of the respondents opinion that green banking is not convenient for them. Findings ? This study examines that majority of the respondents having their bank account and they prefer saving bank account to save their money and for the better convenience. ? From this study we can analyze that majority of the respondents are created their account before 2014 and they are making regular transactions in the bank. ? From this study we can find that most of the respondents are aware of green banking services but some of them feel that this system is difficult to operate and insecure and uncommon due to lack of information about the usage of technology related to green banking. ? After the demonetization of the 500 and 1000 rupee notes there are great increases in the usage of green banking services. We can also find that some of the banks are not taking initiatives to implement the green banking services among their prospective customers. ? By studying this concept we can find most of the respondents think that green banking would make banking activity more convenient for them. ? Here we can analyze that in Bhatkal Taluq majority of the respondents are not getting accurate information about the adoption of green banking practices because the banks are not taking initiatives in these area to create awareness among this people. ? Finally we found that there is a small impact of demonetization on green banking services in Bhatkal Taluq.

VIII.

14. Suggestions

? Bank should take up a strong step to create awareness about the availability of green banking services especially in rural areas. ? The bank should arrange seminar, work shop in the rural areas that should be in respondent's understandable language. so that customer can get information and it may create interest among those who did not using green banking services. ? The government should implement new plans and policy for popularizing concept of green banking services and practices. ? The bank must install biometric ATMs in the rural areas to meet the requirements of illiterate customers ? The bank should erase or remove tax of fee on the usage of other banks ATMs.

IX.

15. Conclusion

Finally I can conclude that as Bhatkal Taluq takes a serious step towards the green banking, coincidently the demonetization made by the government of India also providing remarkable support to the green banking as a lesser availability of new notes to the common people of Bhatkal Taluq green banking products are becoming more successful. Demonetization has spread the wider message to all the people of the country about to increase the cashless transaction, where as green banking is totally about to giving more preference to cashless transaction. So there is a great impact of demonetization on green banking services. So Bhatkal Taluq banks should adopt green banking technology to create eco-friendly environment. Finally the bank should undertake innovative campaign to create awareness about the benefits available under green banking services.

Figure 1. Table 1 :
1
Demographic Factor Particulars Respondents Percentage
Male 65 54.16
Gender Female 55 45.84
Total 120 100
21-31 Years 30 25
31-41 Years 48 40
Age 41-61 years 28 23.33
Above 61 years 14 11.67
Total 120 100
Primary 20 16.67
High school 27 22.5
PUC 30 25
Education Graduation 25 20.83
Post-graduation 10 8.33
Illiterates 08 6.67
Total 120 100
0-2000 15 12.5
2000-3500 28 23.33
Monthly Income 3500-5000 5000-6500 06 35 05 29.17
Above 6500 36 30
Total 120 100
N=120 Source: Survey
Figure 2. Table 2 :
2
Particulars Respondents Percentage
Saving Account 88 73.34
Fixed deposit 12 10
Current Account 13 10.83
Recurring deposit 07 5.83
Total 120 100
N=120 Source: Survey
Interpretation: are have current account and 07 respondents have
As per as above table is concerned it is cleared recurring deposit. According to this table most of the
that out of 120 respondents 88 are preferred saving respondents preferred saving account.
bank account, 12 respondents have fixed deposits, 13
Figure 3. Table 3 :
3
Particular Respondents Percentage
Yes 55 45.83
No 65 54.17
Total 120 100
N=120 Source: Survey
Figure 4. Table 4 :
4
Particulars Respondents
Debit card 70
Credit card 22
Mobile Banking 48
Net Banking 42
Electronic Fund Transfer 56
None of these 11
N=120 Source: Survey
Figure 5. Table 5 :
5
Particular Respondents
Debit card 108
Credit card 25
Mobile Banking 96
Net Banking 59
Electronic Fund Transfer 63
N=120 Source: Survey
Figure 6. Table 6 :
6
Particulars Respondents Percentage
Yes 65 62.5
No 55 37.5
Total 120 100
N=120 Source: Survey
Figure 7. Table 7 :
7
Particulars Respondents Percentage
Yes 98 81.66
No 22 18.34
Total 120 100
N=120 Source: Survey
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Appendix A

  1. Green Banking in India: A Review Of Literature. Ahuja Neyati . International Journal for research in management and pharmacy 2015. January. 4 p. .
  2. Green Banking In India And Global Perspective -A Review. Amin Ashitha . International Journal of Management and Social Science Research Review 2016. 1.
  3. Green Banking Practices In Indian Banks, Ashis Chaurasia Kumar . 2014. February. Blue Square Publishing House. 1 p. .
  4. Green Banking-The New Strategic Imperative. Bahl Sarita . Journal Of Asian Research Consortium 2012. February. 2 (2) p. .
  5. Green Banking Strategies: Sustainability through Corporate Entrepreneurship. B R Bhardwaj , A Malhotra . Greener Journal of Business and Management Studies 2013. 4 p. .
Notes
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© 2019 Global Journals
Date: 2019-01-15