Authors
Anand John Nellyet
Abstract
Demonetization term is defined as the replacement of old currency with the new currency. In India, this phenomenon was conducted on 8 November, 2016 in which only high denomination notes 500 and 1000 was replaced because of the aim to remove the large amount of money from the society. Government took this steps due to various reason such as to reduce the black money and corruption from India and to develop a cashless society. By demonetization, people faced many problems as the daily routine of the people was disturbed by standing the long queue at the front of banks. But this phenomenon also affects in the positive way as a very huge and significant impact is seen in the Indian economy by the demonetization. This paper represent the different types of sectors that show the economy of the country and the impact of demonetization on these sectors. Keywords: Demonetization, Cashless Society, Economy
Introduction
In the world, the economy of India is fast growing and bright spot compare to the other emerging markets. In India, there are multiple strengths of larger youth population, growing middle class people, increasing literacy level and improving technical knowledge shows the proactive change in the present day. The black money, corruption and financial crimes, counterfeit currency that establish the parallel economy is reduced by the coupling of demonetization with Digital India and Jan Dhan Yojana that strengthening the transparency in money transactions.
Unofficial money is termed as the black money while the official money is called as the white money. These black and white money are seen in the form of number two and number one, unaccounted and accounted, Unreported and reported, unrecorded and recorded respectively.
For every economy, money is the life blood. The needs of human beings is increased with the growth of civilization and mankind. In the past, barter system was used for completing the human needs. But with the time, the money was invented that became the strong pillar to develop the economy. This money exchange process is more useful and reliable compare to the barter system. Economy is formed from the activities such as production, exchange, distribution, and services, called formal economy.
References
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| APA Style | Nellyet, A. J. and D'souza, J. F. (2019). Demonetization and Its Impact on Indian Economy. Academic Journal of Economic and Finance, 1(1), 11-15. |
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