Demonetization : Causes and Impacts

As the news of demonetization rushed round the country, it was received with surprise and followedby huge lines in front of ATMs, shops, and petrol pumps. People seeking to exchange their old notes had to stand in huge queues, and many people lost their lives. At the Same time many people supposed that government’s move may turn out beneficial for the common man. The recent step of demonetisation of the high denomination currency notes is, argue its supporters, a master stroke to flush out black money, dismantle terror funding, and crack down on money laundry and counterfeit currency.However, the real motive behind this unprecedented move seems to be undisclosed so far. The economists, intelligentsia, social scientists, politicians and the common man are in confusion regarding the size of its impact on black money and corruption and finally on economic growth and development. This step will affect Indian economy comprehensively. This paper will evaluate causes and impact of recent demonetisation.

Keywords:
Demonetization, Black Money, Cashless Economy, Corruption, Counterfeit Currency