Demonetization: A Boon or Bane to the Indian Economy

Abstract

As we know that a surprising decision was taken by prime  minister Modi on 8 Novemeber, 2016 to curb the black money, terrorism, corruption and smuggling from Indian economy. On 8 November 2016 the policy of the demonetization of  500 rupee and 1000 rupee banknotes was enacted by the Indian Government. He announced that from 8 Nov., 2016 these two currencies will not be considered as legal tender. Where this step benefits the economy somewhere, there is some negative impact also on the Indian economy. So, this lecture is to know the impact of demonetization on different sectors of the Indian economy. Secondary data is collected through different sources like RBI reports, CSO, India, journals etc. This lecture discussed the impact of demonetization which gives positive as well as negative feedback. There is a creation of cashless economy due to the demonetization initiatives.