Published Paper Details:

To demonetize means to remove the validity of a currency unit that is currently in circulation. The government revokes the official status of a currency it has issued as a legal form of payment. The current type or types of money are removed from use and taken out of circulation, typically to be substituted with new ones. The Indian government implemented demonetization for the third occasion on November 8th, 2016. The government made a decision to invalidate all INR500 and INR1,000 banknotes of the Mahatma Gandhi Series, which accounted for about 86% of the currency in circulation. The government also stated that they would release new INR500 and INR2,000 banknotes in return for the discontinued banknotes. They argued that this move would help decrease illegal economic activities, promote digital payments, and lessen the circulation of fake money. The main purpose of this research paper is to analyze the reasons behind and the consequences of the demonetization policy implemented in India in the year 2016. The research is focused on describing a subject and utilizes information gathered from different sources. The research states that the effects of demonetization on the Indian Economy were a combination of beneficial and detrimental outcomes.