Volume : VII, Issue : I, January - 2018

Crash of Demonetization on Fast Moving Consumer Goods: A Study in Bangaluru

Dr. T. Balaji

Abstract :

 

Demonetization is act by the RBI to counter cash hoarding, fake currency, undeclared income, and illegal activities which include corruption, drug trade and terrorism from the Indian economy and to trace the money flow in the economy. Demonetization is used to curb the illegal activities and undeclared income which occurs when a person does not pays taxes to the government and during the period before November 2016 RBI measured that the 500 and 1000 rupees note has considerably increased which may lead to inflation in an economy. The governor of RBI initiated the Demonetization act in November 2016 and thus, the 500 and 1000 rupees were not considered a legal tender and instead new 500 and 2000 rupee note will be issued from 9th November 2016 and the lower currency notes are still to be used and demonetization act does not apply on lower currency.  The present study focus on the impact of demonetization on FMCG, Consumer Retailer level temporary liquidity crunch where be lead to down trading either in terms of lower weight or volumes packs between the ands. The move could also ing down the average transaction size per consumer thus further impacting margins for the retailers.

Article: Download PDF    DOI : https://www.doi.org/10.36106/paripex  

Cite This Article:

Dr. T. Balaji, Crash of Demonetization on Fast Moving Consumer Goods: A Study in Bangaluru, PARIPEX‾INDIAN JOURNAL OF RESEARCH : Volume-7 | Issue-1 | January-2018

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