Demonetization and its Impact on Indian Economy- A Review

Abstract

Demonetization of currency means discontinuity of the particular currency from circulation and replacing it with a new currency. In the context of recent demonetization in India it is the banning of the 500 and 1000 denomination currency notes by the government. The government’s stated objective behind the demonetization policy are as follows; an attempt to make India corruption free, to restraint black money, control inflation, stop funds flow to illegal activities, make people accountable for every rupee they possess and to regulate the  tax evasion , make a less cash society and create a Digital India. The paper makes an attempt to study the history of demonetization in India & in different countries, need for demonetization in 2016, steps initiated by the government to implement demonetization policy and its overall impact on Indian economy.

 

Keywords: Demonetization, Black money, Fake currency, Digital India, Remonetization, Economy, working population.