International Journal of Applied Research
Vol. 3, Issue 5, Part K (2017)
India: Demonetization of currency and its implications
“Demonetization is the removal of a specific method of currency from flow.”
Over demonetization the old currency is changed by the new currency or a money rotation is choked. There are numerous details why a country demonetizes its currency; certain explanations contain to pattern the increase, to control the exploitation and to endorse the cashless dealings.
Recently the Indian government certain to demonetize the major denomination notes i.e. 500-1000 Rupees notes, this stage has been professed as a master blow for the Indian economy by innumerable specialists. This is not the first period that India has demonetized its currency, former it was done in 1946 with the whole ban of Rs 1000 and Rs. 10000 notes to contract with the unaccounted money i.e. black money. Second time it was done in 1978 by Government controlled by Morarji Desai, when Rs 1000, Rs 5000 and Rs.10000 notes were demonetized. The main objective of this step is to excavate the black money, to control dishonesty, fake currency as well as horror funding. This step is measured as the biggest purity determination beside the black money in the history of Indian economy.
As per RBI, 87% dealings in India are currency transactions and this ambiguity is used by dishonored people to shape an equivalent economy with unaccounted money. This equivalent economy helps in terror funding which in opportunity baskets the progress and enlargement of country. Presently high- standards notes version for total value of 86% of the notes in movement in India. It is predictable that this step will assistance in falling the economic discrepancy of India and endorses the cashless economy in India which can be simply checked. There are many frauds of demonetization also, for occurrence; it generates terror between the common men. Local dealers and shopkeepers are facing problem. It is probable that it will disturb the SME sector in India.
How to cite this article:
Dr. Rashmi Gujrati. India: Demonetization of currency and its implications. Int J Appl Res 2017;3(5):757-761.