Problems In Demonetisation

• The biggest problem is that there has been a chaos created among the
common people initially
• Everyone was rushing to get rid of demonetised notes
• Banks and ATMs witnessed long queues while small businesses suffered
temporary financial losses and because of lots of people are died
• The situation is even worse in rural India where people struggled to
exchange and withdraw cash
• Another bigger problem is that destruction of old currency and printing of
new currency involves higher cost
• Another problem is that a move towards black money but many people
who had not kept cash as their black money
• And used or rotated that money in other assets like real estate, gold and so
onn
• There is a decrease in GDP because of reduction in consumption
Use of Hypothesis
1. H0:There does not exist a relationship between demonetisation and
black money
H1: There exist a relationship between demonetisation & black
money
2. H0: there does not exist a relationship between demonetisation
and cash economy
H1: there exist a relationship between demonetisation and cash
economy