Open AccessA Critical Appraisal of Demonetisation in India
Author(s) -
. Monika,
Rabinarayan Samantara
Publication year - 2018
Publication title -
pragati: journal of indian economy/pragati : journal of indian economy
Language(s) - English
Resource type - Journals
eISSN - 2395-261X
pISSN - 2347-4432
DOI - 10.17492/pragati.v5i2.14376
Subject(s) - counterfeit , circulation (fluid dynamics) , terrorism , legal tender , cryptocurrency , currency , business , black market , economics , development economics , economy , monetary economics , political science , market economy , law , computer security , engineering , aerospace engineering , computer science
‘Demonetisation’ has been a gigantic economic experiment in the history of India. It has been largely accepted by observers that the pronounced objectives of demonetization were noble ones that included elimination of black money, curbing of counterfeiting, controlling terrorism and moving the nation to a cashless age. With the demonetisation of legal tender of Rs. 1,000 and Rs. 500 on 8th November,2016, the counterfeit notes or currencies have gone out of circulation immediately, leading to a decline in terror-funding as well as terrorist activities. Demonetisation not only led to an immediate elimination of black money but also paralysed the Hawala rackets operating within the economy. Despite this, however, the fact remains that demonetization was followed by an immediate decline in the growth rate within the economy although the long term economic effects of this move are yet to be seen or examined. It must be further noted that the demonetisation move has been beset with several problems arising particularly due to poor management and implementation.