Impact of Demonetisation on Indian Economy

Abstract

The government of India announced the demonetization of ₹500 and ₹1000 bank notes of Mahatma Gandhi series on November 8, 2016. Prime Minister Narendra Modi announced this move in his speech. Demonetization refers to the act of taking off and retiring a current form of currency and is often followed by replacing it with a new one. This was done so as to reduce the corruption, to beat terrorism and to get rid of the menace of black money. Stimulating India towards a cashless economy was another important objective.