Vol. 4, Issue 12, Part F (2018)

Abstract
Demonetization is a process of replacing the flow of old currency in an economy with a new currency. The aim of demonetization includes controlling inflation, to combat to corruption and to discourage the cash system in an economy. Demonetization enhances the use of digital payment gateway and encourages transparency in economy. India is one of the largest retail markets all over the world which have high cash basis transaction. Demonetization leads the economy from cash basis to paperless basis. This paper attempts to clarify the prime objectives of demonetization and the effect of it on various sectors of Indian Economy. This paper also attempts to analyse the effect of Demonetization on the growth of GDP.