The handloom sector is the second largest economic activity in rural India after agriculture. The handloom industry is based largely on household. The handloom activities are carried out with labour contributed by the entire family members. The demonetization of Rs. 500 and Rs. 1,000 bank notes was a step taken by the government of India on November 8, 2016. During the peak season there is problem in weaving work for the weavers of unorganized sector. The weavers covered under organized sector like KHDC, Co-operative societies etc., are facing no problems through demonetization. Whole of the weaving activities depends upon credit facilities. This paper focuses and explains the effects of demonetization of bank notes on the weaving community, the problems faced by weavers during demonetization, and the opinions of weavers.  Present status is also known from the weavers regarding their daily weaving activities after demonetization in Chintamani taluk of Chikkaballapura district.

KEYWORDS:  Demonetization, Weavers, Silk, KHDC, Weaving Community, weaving Activities.