Effects of Demonetization on making India as a Cashless Economy

Ms. N. Venkata Lakshmi; Prof. G. V. Chalam

Volume : VII, Issue : II, February - 2018

Effects of Demonetization on making India as a Cashless Economy

Ms. N. Venkata Lakshmi, Prof. G. V. Chalam

Abstract :

Traditionally India is a cash based economy, but recently announced the biggest and most ambitious move to crack down black money and move towards digitization and cashlesseconomy. The Demonetization is the act of banning/taking back of a currency notes of its status as legal tender. It is necessary whenever there is a change of national currency. The old note of currency must be retired and replaced with a new currency note. The paper discusses about the action of ‘Demonetization’ taken by Central Government of India on 8^th November, 2016, is a positive step to a cashless economy with a greater focus on electronic transactions is being predicted. The usage of credit/debit cards, net banking and other online payment mechanisms will be another positive effects of demonetization