Demonetization-A game Changer for India's Economy

Abstract

Demonetization has been implemented in India in order to cope up with the various political and economic issues like black money, hoarding, corruption, terrorism etc. Declaration of demonetization on November 08, 2016 had a broad spectrum with a clear headed vision of curbing black money, to detect the fake currency, to keep a check on funding of terrorist activities and to encourage the digitalization giving a brink on which Indian economy could stand with transparency as an effective tool. The economy had to face various challenges and for the banks it was an acid test. The CIC to GDP % showed a perceptible shift away from cash. Notes in circulation also soared along with digitalization. The GDP growth showed a slow down phase due to disruption in transaction of informal sector that is mostly dependent on cash as a medium of payment.99.3% of the junked currency was detected and received by the banks which was thumbs up condition.