Dogo Rangsang Research Journal UGC Care Group I Journal ISSN : 2347-7180 Vol-11 Issue-04 No. 01 April 2021 Page | 109 Copyright @ 2021 Authors PERFORMANCE OF DIGITALIZED PRIVATE AND PUBLIC BANKS IN PRE AND POST DEMONETIZATION PERIOD Dr. Vinay Chandra, Assistant Professor, Department of commerce M.B.G.P.G College, Haldwani, Uttarakhand. (Affiliated to Kumaun University, Nainital) Surabhi Srivastava, Research scholar, Department of Commerce, M.B. Govt. P.G. College, Haldwani, Uttarakhand. (Affiliated to Kumaun University, Nainital) Mayank Jindal, M.Com, NET, Research scholar, Department of Commerce, M.B. Govt. P.G. College, Haldwani, Uttarakhand. (Affiliated to Kumaun University, Nainital) Abstract Demonetization is a process by which certain denominations of banknotes ceased by the government as legal tender. It is the strongest policy that use against undeclared income and corruption to reform the financial system in which the banking sector performs as the backbone to execute these policies in the economy. Hence, the financial soundness of a bank is crucial not only to its depositors but is equally significant to the entire economy. The present study is an attempt evaluates the performance of the top three public sector banks (SBI, PNB, BOB) and top three private sector banks (HDFC, ICICI, Axis) using the CAMEL rating system. The entire study is based on secondary data extracted from the financial statements of respective banks for the period of (2014 - 2019) pre and post demonetization. Ultimately, this research paper indicates less difference in the performance of public and private sector banks for pre and post demonetization on the parameter of CAMEL ratios. Keywords: Demonetization, Performance, Bank, CAMEL Model. JEL Code: G18, G21, E42, E52, G21 Introduction Demonetization is a monetary step in which certain unit of currency notes render invalid as legal tender by the government to clean up the economy and banks are the core part of the economy. Bank channelize all the fiscal policies. Therefore, On November 8, 2016 (Tuesday), the Demonetization of all Rs. 500 and Rs. 1000 banknotes which were 86% (15.41) lack crore of total circulation in exchange for new issued Rs.500 and Rs.2000 banknotes of Mahatma Gandhi Series was enforced to the nation through banks. In the entire process of demonetization, banks performed a key role and made a vibration in their performance as well as product and their services. So, analyzing the performance of banks is essential to understand their financial health and to uplift their standard. Generally, Capital adequacy, assets quality, management efficiency and liquidity are taken into consideration to assess the performance of banks. For which various tools are available, among them the CAMEL model is widely adopted across the countries and also accepted by RBI as a complete rating system to determine the financial status and overall performance of banks. CAMEL model - Camel rating system is an effective tool to measures the financial status of banks and gives the relevant solution in the subject to improve them. Camel framework was originally developed in the U.S. by three banking supervisory (the Federal Reserve, the FDIC, and the OCC) in order to examine the bank's health. Under this system, each banking institutions are evaluated by on- site examination on the basis of five now (six) critical dimension which is referred to as the components of Camel approach. These are Capital adequacy (C), assets quality (A), management efficiency (M), earning quality (E) and liquidity (L). In India, on the recommendation of the Padmanabhan Committee (1995), RBI adopted this approach in 1996. At present, the commercial banks incorporated in India are rate by the Camel model and foreign-based banks in India are rated under the CALCS model (Capital adequacy, assets quality, liquidity, compliance and system).