“Demonetization” Roll Out for Economic Development in India: A Review

Abstract

Demonetization was rolled out in India to bring change in the national currency. The author has reviewed various articles to capture the experience of the roll out. Prime Minister of India Mr. Narendra Modi stated that it was done for economic development of India. On 8th November 2016, the government announced the demonetization of Rs 500 and Rs 1000 bank notes. The execution and experience of common man had mixed feeling about the announcement. Various authors’ views are reviewed and summarized in this paper. Common man faced both positive and negative consequences. It is a reform for addressing corruption and various sectors faced challenges. Real estate, Hawala transactions, Black money, Terror Financing, Counterfeit currency, Non-East insurgency, Kashmir unrest, Terror financing, Maoism etc. were challenged by the reform. Banks played vital role in execution and had to face pressure from the public. It affected the common man with its sudden implementation, scarcity of lower denomination notes to replace the old notes, restriction on amount of withdrawal, prolonged shortage of smaller denomination etc.