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ABSTRACT

Demonetization is the act of shedding/stripping a currency unit of its status


as a legal tender. Demonetization is necessary whenever there is a change of
national currency. The demonetization was done in an effort to stop the
counterfeiting of the current bank notes alleged to be used for funding
terrorism and for cracking on black money in the country. Apart from
disrupting common life of daily citizen, there are even bigger implications of
the economy as a whole. The advantage of this move will be felt only in the
long run.

As rumors had became rife. Two highest denomination notes of Indian


currency are only worth a paper. A major step taken to reform our economic
system by just few minds, is something to look upon, be one of those minds
of the great prime minister, Mr Narendra Modi. Certainly not denying if the
tremendous strategies and plans taken up by the Indian government for the
welfare of different sectors of the country. But devaluing the 500 and 1000
rupee note is something which effects each and every individual of the
country be it a rag picker or a millionaire. A medicine cant be given to all
patients, similarly a single step of demonetization cant be successful at all
levels and specially in a country like India where income groups/people are
so diversified. It is also true that if a person is not always right then he is also
not always wrong. There have been certain benefits of demonetization which
are unbelievable.

Keywords : Demonetization, black money