भारतीय लोक प्रशासन संस्थान
INDIAN INSTITUTE OF PUBLIC ADMINISTRATION
Building Capacity for Good Governance

Demonetisation and its impact(2017)

Dr. Geethanjali Nataraj

INDIAN INSTITUTE OF PUBLIC ADMINISTRATION

The formal announcement of demonetization of high currency denomination notes of Rs. 500 and Rs.1000 worth nearly 15.4 trillion, constituting about 87 percent of the currency in circulation, took place on November 8, 2016. The move aimed at curbing corruption, black money, eliminating counterfeit currency and terrorism funding. Alongside, the move aimed at the promotion of a cashless economy mainly through digitisation, converting the informal economy to a formal one, increasing the scope for financial inclusion,enhancement of financial savings, larger scope for strengthening of treasury accounts of the Government ultimately to be utilized for development finance, etc. Lahiri (2016) mentioned that there are