CASHLESS ECONOMY: THE IMPACT OF DEMONETIZATION ON SMALL AND MEDIUM BUSINESSES IN INDIA

This research paper examines the impact of demonetization on small and medium businesses (SMBs) in the transition to a cashless economy. Demonetization, the process of invalidating the existing currency notes and replacing them with new ones, has been implemented in several countries as a means to curb black money, promote transparency, and drive the adoption of digital payment systems. While the move towards a cashless economy offers numerous benefits, it also poses challenges for SMBs, which heavily rely on cash transactions. This paper analyzes the effects of demonetization on SMBs, including the disruption of cash-based operations, the adoption of digital payment systems, financial inclusion, technological challenges, and the overall implications for the growth and sustainability of SMBs in a cashless economy.