Hidden Savings, Financial Autonomy and the Demonetization Shock: Evidence from Non-Working Women in Kashmir

AbstractWomen constitute approximately half of the global population, and India reflects a similardemographic pattern. According to the 2011 Census, India has 943 females per 1,000 males. Themajority of women live below the poverty line, while approximately two-thirds are illiterate.Against this backdrop, the government has consistently introduced affirmative measures to addressthese persistent socioeconomic challenges. One such major macroeconomic intervention was thedemonetization implemented by the Government of India in 2016. The policy was intended to curbthe circulation of black money, increase bank deposits, and promote economic growth and financialstability. This study examines the impact of demonetization on women’s empowerment, withparticular emphasis on non-working women in Kashmir. It also analyses their financial behaviourand explores their responses to the currency-demonetization process. In addition, the studyidentifies the difficulties experienced by these women during and after the implementation of thepolicy. Case studies are incorporated to assess the socioeconomic implications of demonetizationfor non-working women. The study is based on primary data collected from 150 respondents drawnfrom two districts of Kashmir—Budgam and Srinagar—through purposive sampling, with 75respondents selected from each district. Participants were subsequently selected using a randomsampling technique, and data were collected through semi-structured interviews and a structuredquestionnaire. Several respondents reported losing substantial amounts of money because theirsavings had been kept concealed during the demonetization period. Their disclosures elicited variedreactions from husbands and other family members, ranging from supportive to adverse responses.In certain cases, women continued to conceal their savings. The study comparatively analyses thefinancial behaviour of rural and urban non-working women and seeks to contribute to theenhancement of their financial well-being in the region.