A Study on Impact of Demonetization on Various Sectors and People in India

Anshu Ahuja

Abstract


The act of removing a currency unit of its status as legal tender is known as demonetization. There can be various reasons to demonetize the nation currency like to rebuff inflation, rebuff black money and corruption and also to discourage a cash system. There can be two ways to complete the process of demonetization. First of which can be done by introducing new notes of the same currency and the second can be done by completely substituting the old currency with new currency. So to tackle with the problem of black money and to enhance cashless digital economy, Prime Minister of India acquired a huge step of demonetization on 08 November 2016. One of the major aims of demonetization was to control the terror financing also. As per the one report of Reserve Bank of India, 17742 bn (13% of GDP) value of notes were in circulation and out of which 15347 bn values of notes were of 500/1000 RS notes which were 11% of GDP and 86.5% of total notes as on 4 November 2016.. According to one of the report of RBI Rs. 12.44 lac crore had been deposited by the people till 10 December 2016.  Within fifteen days half of the circulated money had been collected by the banks also. The possible consequences of this decision will be presented by the researcher on various economic variables and common people. Also


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