Volume : 6, Issue : 3, March - 2017

Demonetization - A Case of India

Prof. Naishal Raval

Abstract :

<span style="text-align: justify; font-size: 12pt; line-height: 200%; font-family: "Times New Roman", serif; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">Demonetization<span style="font-size: 12pt; line-height: 200%; font-family: "Times New Roman", serif; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"> <span style="text-align: justify; font-size: 12pt; line-height: 200%; font-family: "Times New Roman", serif; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change of national currency: The current form of money is pulled from circulation and retired, often to be replaced with new currency or coin. In general, demonetization  means the withdrawal of particular currency from the circulation in the economy. In the history of India, demonetizations happen twice.<span style="text-align: justify; font-size: 10.5pt; line-height: 200%; font-family: Arial, sans-serif; color: rgb(37, 37, 37); background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"> <span style="text-align: justify; font-size: 12pt; line-height: 200%; font-family: "Times New Roman", serif; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">first in the year 1946 and secondly in the year 1978 and in both cases, the goal was to combat tax evasion by "black money" held outside the formal economic system.             Presently on 8th November 2016, Government of India came forward with the discontinue the legal tender from the circulation, with main aim of removing black money from the system, eliminating funding for terrorist activities, discouraging the cash-dependent economy.<o:p></o:p>             The main aim of this paper is to highlight the result of those countries, which had gone through process of demonetization and to examine the social effect of demonetization on Indian Economy.<o:p></o:p>