Demonetization Strategy: Impact On The Indian Population (original) (raw)

Demonetization: Redefining Indian economy

International Journal of Commerce and Management Research, 2016

This article has made an attempt to assess how the tool of Demonetization can be used to eradicate parallel economy. Demonetization is one of the big steps initiated by Government in addressing the various issues like black money, counterfeit currency, corruption, terrorism etc. History of demonetization in India and around the world is addressed. Lesson from historically demonetization guides us how to redefine economy of country by overcoming the earlier causes for failure. Demonetization obliviously brings many inconveniences to common people but it is for only short term. However the long term benefits of demonetization overrides the short term challenges. Government initiatives like Income Declaration Scheme 2016, Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015, Joint Declaration of AEOI between India and Switzerland to address black money etc. in redefining Indian economy are to be appreciate and these initiatives leaves their footsteps as part of history.

THE DILEMMA OF DEMONETIZATION AND ITS IMPACT ON INDIAN ECONOMY

This article studies the background and impact of the recent demonetization initiative taken by the Indian Government. Upon the advice of Reserve Bank of India (RBI), Government of India demonetized all old bank notes of ₹1000 and ₹500 denominations and replaced them with new bank notes of ₹2,000 and 500 denominations. As per various statements by the government as well as commercial sources, the key motives of this policy were to counter the shadow economy and eradicate use of illicit and counterfeit cash being used in facilitation of the terrorism and illegal activities. The sudden nature of the policy announcement gave rise to various drastic problems e.g. prolonged cash shortages and public unrest that had a significant effect on small businesses, agriculture, and transportation, threatening the economic output. Simultaneously, it attracted heavy criticism from the opposition parties, prominent economists and international media. The move was widely commended by several prominent factions of the banking industry as well as international pundits. The policy was heavily criticized due to its poor planning and timing thus triggering protests, litigation, and strikes. As far as the economic impact of the policy is concerned, following the announcement, the indices of NIFTY 50 stocks and BSE SENSEX dropped by almost 6% along with various other economic factors which have been discussed later in detail. The move also affected India?s GDP and industrial production. In this paper we will discuss the primary motives and benefits of this policy as well as its impact on the socio-economic scenario of India and her people along with recommendations for future.

Demonetization in India: Rationale, Efficacy and Impact

Prakash Publications, Changanacherry, Kerela, 2017

The first Anniversary of demonetisation is celebrated by Government of India as 'Anti-Black Money Day' whereas the opposition parties led by congress celebrated it as a 'Black day' Post demonetisation, when Banks have received Rs15.28 trillion ($239 billion), or 99% of the currency invalidated, does it mean all the black money has become white or otherwise. The Nobel laurates, international and domestic financial institutions, Economists, intellectuals and common man differed about the relevance of demonetisation and its impact. Few supported while few opposed; few said positive impact while free said it as disaster. For example:- Amartya Sen termed it as 'gigantic mistake both in terms of dealing with corruption as well as the objective of one rapid jump of getting into a cashless economy. He also called it as 'despotic action that has struck at the root of economy based on trust...if (demonetisation) undermine notes, it undermines bank accounts, it undermines the entire economy of trust.

Demonetization - Necessity and it's Impact on Indian Economy

"Demonetization-Necessity and it's Impact on Indian EconomyProf. Dr. Roshan S.PatelAssociate Professor,Department of Accountancy,Sheth C.D.Barfiwala College of Commerce, Surat. Email: roshan_sangita@yahoo.com Mob. No. : 9426124543Abstract: The Government has implemented a major change in the economy environment by demonetizing the high value of currency notes - of Rs. 500 and Rs. 1000. India has carried out demonetization earlier two times, i.e. first was on 12th January 1946 ( Saturday ) and second one was on 16th January,1978 ( Monday ) under Morarji Desai Government. This is the third time demonetization happen in India i.e. on 8th November,2016 ( Tuesday ). So like this in India demonetization has occurred three times. On this ground government announced that INR 500 and INR 1000 notes will cease to be legal tender effective immediately. People have been given a time up to 30th December, 2016 to exchange the notes which are held by them. The purpose of this study is to compare and analyze the impact of demonetization and their significance in the economic development of India by comparing with other countries. The demonetization move has been taken in view to club black money, corruption and issues like circulation of fake currency and terror funding. Here I am going to discuss the reasons of it as well as its necessity to implement in India. I would also like to focus on how the tool of demonetization can be used to eradicate parallel economy. This is one of the biggest steps initiated by government in addressing the various issues like black money, circulation of fake currency, corruption, terrorism etc.Key Words: Demonetization, Indian Economy, Black money, corruption.********* Prof.Dr. Roshan S. Patel""Demonetization - Necessity and it's Impact on Indian Economy"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-1 | Issue-5 , August 2017, URL: http://www.ijtsrd.com/papers/ijtsrd2403.pdf Article URL: http://www.ijtsrd.com/management/accounting-and-finance/2403/demonetization---necessity-and-it's-impact-on-indian-economy/profdr-roshan-s-patel"

DEMONETISATION OF CURRENCY IN INDIA -PROBLEMS AND PROSPECTS

the department of economics, thiruvalluvar University, 2018

Demonetisation of high denomination of Indian Rupees is apparently a welcome march to the regular Indian. Generally speaking ‘Demonetisation’ is the act of stripping a currency unit of its status as legal tender. Demonetisation is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit is called as Demonetisation of money. It is nothing but, withdrawal of a particular form of currency from circulation. The incidence of fake Indian currency notes in higher denomination has increased. Hence, monetization comes with immense benefit but Governments should also consider about informal sector where most of the payment is in cash only. Consequently this move is good but Utilitarian Principle would have made it further better. The bold step that has been taken to fight the problem of black money, counterfeit currency, and corruption will also speed up the move to a cashless economy. While the country still debates on the impact of this bold and historic step. Recent demonetisation of high denomination Indian Currency such as Rs.500 and Rs.1000 notes was a part of the Government to put a check on the unaccounted wealth and the counterfeit currency notes that are circulating in the economy. This is also a main cause for the remarkable features of terrorist and other illegal activities on the economy. Therefore, the overall objectiveof this research paper is to critically analyze the impact of Demonetisation on the Indian Economy with special reference to prospects, problems, difficulties and constraints faced by tourists, terror financing and common man.

Political Economy of Demonetization in India: Issues and Impact

The Indian Economic Journal, 2018

Demonetization is the act of stripping/ withdrawing a currency unit of its status as legal tender. Its impact on Liquidity crunch, Loss to population using currency, Consumption affected, Predicted Loss of Growth, Effect on bank flooded with more deposits, Effect on black money. This study inferred that 91 percent respondents have reported unavailability of cash at banks and ATMs followed by ATMs closed 87percent long quos and waiting hours 76percent, mismanagement in the banks 59percent and lack of cooperation by the bank staff 45percent and 98percent people faced mental agony. Keywords: Demonetization, corruption, black money, un-organised sector, economy,

Demonetisation -Problems and the Way Forward

Demonetisation, announced by Hon. Prime Minister of India Sri. Narendra Modiji on November 8, 2016 was primarily aimed at eliminating black money and counterfeit notes in the economy. However, the way in which it has been implemented has caused severe hardships to the millions of people, across the socioeconomic circles. It has evoked mixed reactions among economists and politicians. Also, it is doubtful whether the existing framework is adequate for curbing black money that may arise in future. If not, the numerous difficulties suffered by the citizens of the country will be worthless. Because the famous Nobel laureate economist Mr. Paul Krugman said, 'the move might only force the corrupt to become more careful the future'. It is in this context, the paper looks at the demonetisation scenario in India, along with the way forward.

Demonetization in India: An Evaluation

Asian Journal of Economics, Business and Accounting

The aim of this paper is to discuss the motives and after effects of demonetization decision taken by the Indian Government on November 10, 2016. In addition, it has tried to highlight the demonetization effects in some other countries. The opinions of economists, financial analysts and intellectuals have been highlighted on this paper based solely on published information collected from previous articles, newspapers and books related to the subject matter. The paper will hopefully come to the help of those academicians seeking to investigate more and the policy makers who want some academic references.

Demonetization and Its Impact on Common People and the Economy

Global journal for research analysis, 2018

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 – To study the impact of demonetization on common people. To study the positi...