Introduction

Demonetization 2016 is a story that is suddenly starts in India but figure out in
front of Indian citizens slowly. On 8th nov 2016 the government of India
announced the demonetization of all Rs 500 and 1000 banknotes of mahatma
Gandhi series and also announced the issue of new banknotes in exchange for
the demonetized banknotes. The Indian government claimed that the action
would curtail the shadow economy and reduced the use of illicit and
counterfeit cash to found illegal activity and terrorism.

At the time of announcement of demonetization our hon’ble former prime

minister of India Narendra Modi he believed that Indian people support his
decision because he makes in front of people many policies to counterfeit the
black money and to reduced the corruption. But in actual demonetization
become a topic of debate in India. Someone says it’s not helpful in curbing
black money, but some says its favorable to Indian economy in future. It’s
become a great puzzle to understand in short period about the success of
demonetization.

Initially the moved received support from several bankers as well as from some
international commenter’s. The move also criticized as poorly planned and
unfair and was met the protest, litigation and strikes against the government in
several places India. Debate also took place concerning the move in both
houses of parliament. Effect of demonization was followed by prolonged cash
shortage in the weeks that followed which created disruption throughout the
economy. People suffering to exchange their banknotes had to stand in lengthy
queues and its gives several deaths linked to rush to exchange cash?

The moved of demonetization swayed everybody. It resulted into a panic

situation because people were short of cash in their hands. The consequences
of demonetization led the people to use of digital payments and online
transactions in almost all parts of India.
ABSTRACT:
This project entitails the problems related to pre and post demonetization period and thereby
to find out
solutions and to provide suggestions in order to overcome the problem. A survey was
conducted around 65
applicants responded actively. Demonetization is the process of withdrawal of a particular
form of currency
from circulation. The purpose of the study is to compare and analyse the impact of
demonetization on Indian
economy during pre and post period. The older denominations must be replaced with the new
one’s. This
article also covers the various other countries who tried demonetization they are
Nigeria,Ghana,Pakistan,Zimbabwe,North Korea, Soviet Union, Myanmar and Australia. The
findings of the
study reveals that India will achieve a significant growth by adopting the demonetization
strategy and will
create a huge positive impact on the entire economy in a long run. This paper also shows that
it was quick
step taken by the government of India without any measures which people had to face a lot of
consequences
in standing in the long queues to exchange their older denominations.
Keywords: Black Money, Black Market, Cashless transactions, Digital
economy,Currency,Indian economy,
Gross Domestic Product, International Financial Market.