AN EVALUATION ON THE IMPACT OF DEMONETIZATION ON MIDDLE AND LOWER INCOME GROUP

The demonetization had a great major and instant impact on Indian economy. An attempt has been made to find impact of demonetization on middle and lower income group. It is found that demonetization has adversely affected the daily routine life of middle and lower income group people of India. It also results that demonetization helps in curbing blank money and reducing corruption, terrorism etc. The Demonetization policy announced by Prime Minister Narendra Modi at midnight on November 8, 2016, the government would no longer recongnize the existing 500 notes and the 1000 notes as valid forms of the currency of legal tender. The Reserve Bank of India reported that between November 4, and December 23, 2016, “the amount of money in circulation has been reduced by almost half”. Demonetization can be assumed as a “Surgical Strike” on unaccounted Money, Terrorism, Fake currency, Unorganised trading, Real Estate, Share market. On the other hand Demonetization is a device to encounter the inflation, Corruption and Crime, depress a cash dependent economy and to assist the trade. The lack of liquidity has caused serious economic difficulties. After months of demonetization, cash was still scarce in many places. After the process of demonetization only the Primary sector shows some encouraging development and if we are taking about the Secondary and Tertiary sector both were smashed down and will affect the whole Indian market.