Volume : 6, Issue : 6, June - 2017

Demonetization

Vineeta, Akanksha Bharti

Abstract :

<p>&nbsp;<i style="text-align: justify;"><span style="font-size:12.0pt;mso-bidi-font-size:11.0pt;line-height:&#10;107%;font-family:&quot;Times New Roman&quot;,serif">The government has implemented a major change in the economic situation by demonetizing the high value currency notes &ndash; of Rs 500 and Rs 1000 denomination. It ceased to be legal tender from the midnight of 8th of November 2016. People had been given upto December 30, 2016 to exchange the notes held by them.1 The proposal by the government involves the elimination of these existing notes from circulation and a gradual replacement with a new set of notes. The reasons offered for demonetization are two-fold: one, to control counterfeit notes that could be contributing to terrorism, in other words a national security concern and second, to undermine or eliminate the &ldquo;black economy&rdquo;. This paper is focused toward to figure out various economical, social and political implication of this step.&nbsp;</span></i></p> <p class="MsoNormal" style="text-align:justify"><i><span style="font-size:12.0pt;mso-bidi-font-size:11.0pt;line-height:&#10;107%;font-family:&quot;Times New Roman&quot;,serif"><o:p></o:p></span></i></p>