DEMONETIZATION AND ITS IMPACT ON COMMON PEOPLE AND THE ECONOMY

Ranju Kumar Bharali

Abstract


Demonetization of currency is a radical monetary step in which a currency units status as a legal tender is declared invalid. In November 2016, the government of India has taken a bold step to demonetize Rs. 500 and Rs. 1000 currency notes which are the two biggest denominated notes accounted for nearly 80 percent of the currency supply. In India demonetization move has been taken to unearth black money, to trace fake currency, to transform Indian economy into cashless economy, to control terror funding and so on. This decision taken by the government is for welfare of the nation, but so many questions comes in mind that, what will be the short term and long term impact of this decision on Indian economy? What is the impact of this decision on common people? Would the Indian economy be prosperous or would be poor and so on.

Against this backdrop the present study is being proposed with following objectives –

  1. To study the impact of demonetization on common people.
  2. To study the positive and negative impact of demonetization on the economy.
  3. To know the impact of demonetization on digital transaction.

Methodology: The paper is mainly based on secondary data. Secondary data is collected from internet, journals, articles, newspapers, magazines etc. However the observation of the researcher is also applied especially to study the impact of demonetization on common people.

Key words: Demonetization, digital transaction, cashless economy, common people


Keywords


Demonetization, digital transaction, cashless economy, common people

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References


Dhara K, Abhani (2017), A study on impact of demonetization over the banking sector with reference to veraval city, International Journal of Marketing and Financial Management, Vol. 5, Issue-3, p. 21-26

Muthulakshmi E.amatchi, Impacts of Demonetization on Indian Economy—Issues & Challenges, IOSR Journal of Humanities and Social Science (IOSR-JHSS), p. 34-38

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Singh, Brijesh; Thimmaiah (January, 2017), Demonetization – Win or Lost, International Journal of Management, social science and technology.

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Uke Lokesh (February, 2017), Demonetization and its effects in India, SSRG international journal of economics and management studies, Vol-4, issue-2, p 18-22

India Today, November 13, 2017.


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