Vol. 3, Issue 4, Part A (2017)

Abstract
Demonetisation is an act of withdrawal of a particular form of currency from circulation. As per the annual report of Reserve Bank of India (RBI) of 31 March 2016 stated RBI, the total value of the Rs 500 and Rs 1,000 notes in circulation till March 2016 was Rs 14.18 lakh crore. Of this amount, 15,707 million comprised Rs 500 notes and 6,326 Rs 1,000 notes. This accounted for 86% of the total currencies in the system (Agencies| Dec 05, 2016) [1]. As per the press release of RBI dated on 13/12/2016, the total number of old notes (which are now withdrawn) of value of ` 12.44 the customers have deposited lakh crore. The government claimed that the move of demonetisation is required for making the black money worthless and for reducing the corruption. The move was targeted to stop the funding of terrorism and to stop the problem faced by fake currency. Demonetisation makes the country to move towards cashless environment. Soon after demonetisation people started to adopt to modern methods of cashless payments. To encourage this transformation government has introduced discounts and freebies on digital transactions. The emerging of cashless economy has been widely expanded and the knowledge of cashless economy has been spread across. The wide usage of digital payment would reduce duplicity. Cashless payments are becoming trend as it saves a lot of time and the benefits received are numerous. The main motive behind the digital mela by Narendra Modi is to increase transparency. For promoting cashless economy, many cashless transaction provider have started to give 100% cashback on the transaction that are cashless. Demonetisation and cashless economy are interlinked. Cashless economy is result of demonetisation. The volume of uneducated lower sectors of vendors are progressing towards the change.