presentation on demonetization effect on rural area

A Project on Market Research “Demonetization Effect on Rural Area”

PRESENTED BY- SAYANTAN ROYCHOUDHURY

Demonetization – A brief introduction

Demonetization is the act of stripping cash notes of its status as legal tender. The old currency notes must be retired and replaced with a new currency unit. Indian Government first came up with the idea of Demonetization in 1978 by banning of

INR 1000, INR 5000, INR 10,000, the 1.7% of total notes in circulation.(Currency worth INR 1.46 Billion)

Later In India, on 8th November,2016, the Government announced that INR500 and INR1000 notes would be ceased as legal tender.

The move is aimed at controlling black money, fake currency circulation and terror financing.

Some important numbers

Notes in circulation of November 4,2016 is Rs 17,742 billion which is 13% of GDP-

0.13,

0.87,

Circulation of money

Percentage of circulation of money

86.50%13.50%

Circulation of INR500/1000

Circulation of INR500/1000 Others

Values of 500/1000 notes in circulation is Rs 15,347 billion

Literature review – The economists tend to have varying opinions about the move

The great Economist, Nobel Prize winner and also Professor of Harvard University, Dr. Amartya Sen refers demonetization as “Despotic Act”.

The Ex Governor of RBI Mr. Raghuram Ranjan emphasized on tracking the data and tax administration rather than stripping the currency.

The great American Economist, Novel Prize winner, Mr. Paul Krugman believed that demonetization won’t serve any legitimate purpose.

Mr. Arvind Panigrahyi, the Vice Chairperson of Niti Ayog supports the step by saying it would help the economic growth of India in long term perspective.

Sectorial Impact

Divergent

Marginally Positive Negative Neutral

Negative Negative

Divergent according to segmentation

Sector

Financial Service

Commercial Banks

Mutual Funds

Pension Funds

NBFCLife

Insurance

Worth of Rs 72.606 trillion





Non Banking Financial Company

The vision of the firm is “To Transfer RURAL LIVES and Drive POSITIVE change in the communities” and “To be a LEADING financial service provider in semi urban and rural India”.

The Brand Pillars of Mahindra Finance consists of :

Accepting No Limits

Alternative Thinking

Driving Positive Change

Services

NBFC fund loans to buy commercial

vehicles.

NBFC fund loans to buy personal

vehicles.

NBFC has recently

introduced the scheme of

funding loan to book

conceptual vehicles.

Project

The Project is to do a research on ‘Demonetization Effect on Rural area’. As NBFC funds the loan to buy the vehicles, so it includes the manufacturer,

dealer and banks. Many NBFC mainly focuses on rural areas as well , as 80% of the total revenue

is generated from rural areas.

Requirement of Project

The impact on Auto Finance company is divergent according to the segment. In rural segment 70- 80% transactions are done in cash so it gets highly effected. Resale value is likely to come down for vehicles especially for the commercial

vehicles. As NBFC’s overall market share is highly dependent on rural segment so it got hit

by demonetization. The objective of the project is to realize the effect on rural segment.

Project Description

A team of 18 people have been appointed by the company to conduct a research on “Demonetization Effect on Rural Area” on different areas of Maharashtra.

First we were divided into 6 groups. Each group consisted of 3 people. Second each 2 of 6 groups decided to visit the manufacturer, dealer and rural area. Third we went to our designated areas to gather information on the effect of demonetization. Fourth on the basis of this information we prepared the secondary research objective. Fifth on the basis of secondary research objective we prepare a questionnaire. Sixth we sent the questionnaire to the company which was approved by the company. Seventh they sent 6 different groups to 6 different districts and provided the contacts of

concerned person of the respective area.Group LocationGroup 1 KolhapurGroup 2 SolapurGroup 3 SataraGroup 4 AhmadnagarGroup 5 BaramatiGroup 6 Sangli

Interviewed People

Scope of Business

Anonymous.

Patel & Sons Construction

Pvt. Ltd.Cont-

9923293485

Loan of Rs 90 lakhs

Contract of Rs

2,80,00,000

Purchase of 2

Pokland Machines

Learning Outcome

Interacted with people on a large scale and

handled their grievances

Worked with a team of 18

creative people and

applied team dynamics for a successful

venture

Lead a team of 18 people always gives

a great experiential learning of Team spirit,

Coordination, and

understanding Modus Operandi.

Interacted with many

people, convinced

them to take loan and as well as the

repayment of EMI has been successfully convinced through me

Professionalism has been successfully experienced in terms of

maintenance of grooming standards,

Punctuality, patience and perseverance

Thank You