Demonetization-A Comparative Study “Special Reference to India With Rest of World” Dr. Singh Ram Assistant Professor Commerce, Panjab Universitry Constituent College Sikhwala, Sri Mukatsar Sahib Online published on 2 May, 2018. Abstract The government has implemented a major change in the economic environment by demonetising the high value currency notes-of Rs 500 and Rs 1000 denomination. These ceased to be legal tender from the midnight of 8th of November 2016. People have been given up to December 30, 2016 to exchange the notes held by them. The proposal by the government involves the elimination of these existing notes from circulation and a gradual replacement with a new set of notes. The demonetisation was done in an effort to stop the counterfeiting of the current banknotes alleged to be used for funding terrorism and for cracking down on black money in the country. The present study has been deals with the announcement of demonetization of currency notes (500, 1000) its needs and problems faced by the society and its immediate positive and negative impacts, prospective impacts on economy. Secondary data has been used for study which is collected from different newspapers and websites. Hence, it can be concluded that apart from disturbing daily lives of the common citizen, but it will brings constructive implications for the whole economy in long run. It is too early to even imagine the impact on all sections of society and parts of the economy. The advantages of this move, though, will be felt only in the long-term. While formal modes of payments such as debit and credit cards, net-banking and digital wallets is increasing and should get a boost, this will take a long time to be felt simply because the proliferation of these products is still low among the middle classes and the poor, for whom cash is still the predominant mode of transactions. The government‘s move is daring, undoubtedly this is Modi‘s biggest move since he was elected prime minister. While the intention of Govt. is clear but impact is yet to be seen. Top Keywords Denomination, Demonetisation, Economy, Currency, Exchange of Currency, GDP. Top |