The effects of public and private sector banks on their E-banking system in the prior and subsequent of demonetisation

Demonetisation is the act of stripping a currency unit of its status as legal tender and is going to be one of the economic events of our time. Demonetisation is necessary whenever there is a change of national currency and its impact is felt by every Indian citizen. Rising use of credit/debit cards, net banking and other online payment mechanisms will be another positive effect of demonetization, as these would not only lower transaction costs but some of these could help earn some fee income as well. The present study is conducted to investigate the use of e-banking facilities for purposes post demonetisation in India. An awareness level scale and an operation level scale are administered about simple transaction activities like amount transfer to other person‘s account on a sample of 100 people of rural and urban areas of India. An Analysis of variance (ANOVA) test was conducted which shows that rural people differ significantly with urban people in their awareness level as well as usage level of e-banking. The survey was done on rural and urban customers of both public and private sector banks. Finding of the study are helpful for banks to improve their e-banking facilities and usage of e-banking.