Volume : 7, Issue : 3, March - 2018

Demonetization and Its Impact on Common People and the Economy

Ranju Kumar Bharali

Abstract :

<p>&nbsp;<span style="font-family: Arial, sans-serif; text-align: justify; text-indent: 0.5in;">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.</span></p> <p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;text-align:&#10;justify;text-indent:.25in;line-height:150%"><span style="font-family:&quot;Arial&quot;,&quot;sans-serif&quot;">Against this backdrop the present study is being proposed with following objectives &ndash;<o:p></o:p></span></p> <p class="MsoListParagraphCxSpFirst" style="margin-bottom:0in;margin-bottom:.0001pt;&#10;mso-add-space:auto;text-align:justify;text-indent:-.25in;line-height:150%;&#10;mso-list:l0 level1 lfo1"><!--[if !supportLists]--><span style="font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;&#10;mso-fareast-font-family:Arial">1.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: &quot;Times New Roman&quot;;">&nbsp;&nbsp;&nbsp; </span></span><!--[endif]--><span style="font-family:&quot;Arial&quot;,&quot;sans-serif&quot;">To study the impact of demonetization on common people.<o:p></o:p></span></p> <p class="MsoListParagraphCxSpMiddle" style="margin-bottom:0in;margin-bottom:&#10;.0001pt;mso-add-space:auto;text-align:justify;text-indent:-.25in;line-height:&#10;150%;mso-list:l0 level1 lfo1"><!--[if !supportLists]--><span style="font-family:&#10;&quot;Arial&quot;,&quot;sans-serif&quot;;mso-fareast-font-family:Arial">2.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: &quot;Times New Roman&quot;;">&nbsp;&nbsp;&nbsp; </span></span><!--[endif]--><span style="font-family:&quot;Arial&quot;,&quot;sans-serif&quot;">To study the positive and negative impact of demonetization on the economy. <o:p></o:p></span></p> <p class="MsoListParagraphCxSpLast" style="margin-bottom:0in;margin-bottom:.0001pt;&#10;mso-add-space:auto;text-align:justify;text-indent:-.25in;line-height:150%;&#10;mso-list:l0 level1 lfo1"><!--[if !supportLists]--><span style="font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;&#10;mso-fareast-font-family:Arial">3.<span style="font-variant-numeric: normal; font-variant-east-asian: normal; font-stretch: normal; font-size: 7pt; line-height: normal; font-family: &quot;Times New Roman&quot;;">&nbsp;&nbsp;&nbsp; </span></span><!--[endif]--><span style="font-family:&quot;Arial&quot;,&quot;sans-serif&quot;">To know the impact of demonetization on digital transaction. <o:p></o:p></span></p> <p><span style="font-size:11.0pt;line-height:115%;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;&#10;mso-fareast-font-family:Calii;mso-fareast-theme-font:minor-latin;mso-ansi-language:&#10;EN-US;mso-fareast-language:EN-US;mso-bidi-language:AR-SA">Methodology:<b> </b>The paper is mainly based on secondary data. Secondary data is collected from internet, journals, articles, newspapers, magazines etc. However the observation of the researcher is also applied especially to study the impact of demonetization on common people</span></p>