A study on demonetization and empirical analysis of effect of demonetization on microcredit participation of self-help groups in urban slums of Delhi

This study makes an attempt to present a descriptive account of meaning of, reasons for and impact of demonetization on the Indian economy, using relevant data from published papers, journals, magazines and websites. The study follows an inferential research design and is a mix of, both qualitative and quantitative analysis of the aftermath of demonetization. The paper also uses a case-control technique to report a comparative analysis of the impact of demonetization on women members of Self-Help Groups or beneficiaries of microcredit participation (case group) vis-a vis non-participants (control group), primary data for which was collected through structured questionnaire-based surveys and interviews of women respondents (ages 18 and over), in urban slums of north-south Delhi, during the month of February, 2017 and the following months, the period immediately after the demonetization drive. Statistical analysis of data consisted of two proportions Z-tests for comparison across the two groups and estimation of the odds ratio to validate the results, using SPSS. Microcredit sector, being highly cash intensive, the Self-Help Promoting Institutions (SHPIs), Banks, Microfinance Institutions (MFIs) and most of all, the SHG member women faced indescribable challenges of tremendous extents, in collections and disbursements of loans to the poor, who were the gravest hit, as they acquire loans and repay them only in cash.