Demonetization - Necessity and it's Impact on Indian Economy

Demonetization-Necessity and it's Impact on Indian EconomyProf. Dr. Roshan S.PatelAssociate Professor,Department of Accountancy,Sheth C.D.Barfiwala College of Commerce, Surat. Email: roshan_sangita@yahoo.com Mob. No. : 9426124543Abstract: The Government has implemented a major change in the economy environment by demonetizing the high value of currency notes '“ of Rs. 500 and Rs. 1000. India has carried out demonetization earlier two times, i.e. first was on 12th January 1946 ( Saturday ) and second one was on 16th January,1978 ( Monday ) under Morarji Desai Government. This is the third time demonetization happen in India i.e. on 8th November,2016 ( Tuesday ). So like this in India demonetization has occurred three times. On this ground government announced that INR 500 and INR 1000 notes will cease to be legal tender effective immediately. People have been given a time up to 30th December, 2016 to exchange the notes which are held by them. The purpose of this study is to compare and analyze the impact of demonetization and their significance in the economic development of India by comparing with other countries. The demonetization move has been taken in view to club black money, corruption and issues like circulation of fake currency and terror funding. Here I am going to discuss the reasons of it as well as its necessity to implement in India. I would also like to focus on how the tool of demonetization can be used to eradicate parallel economy. This is one of the biggest steps initiated by government in addressing the various issues like black money, circulation of fake currency, corruption, terrorism etc.Key Words: Demonetization, Indian Economy, Black money, corruption.********* Prof.Dr. Roshan S. Patel"Demonetization - Necessity and it's Impact on Indian Economy" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-1 | Issue-5 , August 2017, URL: http://www.ijtsrd.com/papers/ijtsrd2403.pdf http://www.ijtsrd.com/management/accounting-and-finance/2403/demonetization---necessity-and-it's-impact-on-indian-economy/profdr-roshan-s-patel