Vol. 2, Issue 7, Part E (2016)
Demonetization in India: An effort to curb black economy
Demonetization in India: An effort to curb black economy
Author(s)
Richa
Abstract
Indian economy has been suffering from the problem of black money for a long time. Black money is the money which is uncountable for the national income and no tax is paid to government on this amount. Consequently, it becomes very dangerous and root cause of corruption to the entire economic system of a country and it decreases the growth rate of a economy. Keeping this problem in view, the Government of India decided to implement the policy of demonetization to devaluate the existing authorized currency. On the eve of 8th Nov. 2016, Indian Prime Minister Sh. Narender Modi announced his government’s decision to cancel the legal tender character of old currency with effect from 09th Nov. 2016. It included the cancellation of legal tender of Rs. 1000 and Rs 500 and insurance of new currency of Rs. 2000 and Rs. 500 in exchange for the old banknotes in form of Indian currency. The present research paper highlights the need and impacts of demonetization in 2016 on Indian economy.
How to cite this article:
Richa. Demonetization in India: An effort to curb black economy. Int J Appl Res 2016;2(7):341-343.