DEMONETIZATION

Abstract

On 8 th November 2016 Prime Minister Narendra Modi announced that two of india`s
largest notes INR500 and INR 1000 will cease to be legal tender except for a few purposes . 86b percent of cash in circulation was rendered invalid and these notes had to be deposited in banks by the 30th of December 2016. This move is aimed at controlling black money , take currency circulation and terror financing . One need to understand that 80% of India’s labour force is employed in the informal sector , Which comprise of 45% of the GDP of our coemtry . Ouer 60% of population of india lives in below the international poverty .Since our economy is an under banked economy , presentb demonetization move would no doubt cause a serere social experiment across the segment of our population . At the first place and on a shortterm basis th is move would benefit the Govt ,which shall effectiuelly deploy its resources to percolate the impact to the poor and needy of our Country . This study will help us to know about the positive and negative impact of note ban decision taken by Indian Govt.