Effect of Demonetisation on Agriculture of Punjab with Special Reference to Agricultural Development Banks of Nakodar and Shahkot (Distt. Jalandhar)

Abstract

Money is regarded as the backbone of the economic systems. This is the indispensable element of any economy. The Indian economy faced a major jolt when demonetization was announced by the honorable Prime Minister on 8th of November 2016. Punjab being the agrarian economy, this study aimed to know the impact of demonetization on the financial position of Agricultural development banks of Punjab with the objectives: To study the financial position of the Agricultural Developments banks after demonetization and To study the impact of demonetization on farmers. A few farmers were also contacted and tried to know their ordeal. The study revealed that the agricultural development banks faced huge financial crises as the amount of Non Performing Assets (NPA) increased and the banks incurred huge losses as aftermath of demonetization. The farmers were badly affected by the decision as they became defaulters to repay the loan amount till 2019.