A STUDY ON THE IMPACT OF 2016- DEMONETIZATION IN INDIA

AUTHOR – SARNITHA BALASUBRAMANIAN, STUDENT AT SAVEETHA SCHOOL OF LAW, SAVEETHA INSTITUTE OF MEDICAL AND TECHNICAL SCIENCES (SIMATS), SAVEETHA UNIVERSITY, Chennai.

BEST CITATION – SARNITHA BALASUBRAMANIAN, A STUDY ON THE IMPACT OF 2016- DEMONETIZATION IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (2) OF 2024, PG. 507-518, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

Demonetisation is the process of taking away/ceasing the legal tender rights or the status of any unit of currency. The currency has been demonetised thrice in India – the first was on January 12th, 1946; second on 16th of January, 1978 and third on 8th November, 2016. One promising result has been a dramatic increase in top line sales for India’s ecommerce and digital payment companies. Other countries where demonetisation were successful are Pakistan in 2016; Zimbabwe in 2015 and Australia to flush black money and for security purposes replaced with polymer banknotes. Empirical research was adopted with 214 responses. The respondents were collected through simple convenient sampling of primary sources from family, friends and relatives and secondary source of data was collected from magazines, articles and journals. The statistical tools used are graphs and correlation. Demonetisation led to cash shortage in the country where the most impacted sectors were agriculture; real estate; tourism as it has created chaos and frenziness in the day to day activities of indian citizens. Banking sector had the most positive impact and the exception was the healthcare sector. Some suggestions were to encourage small and backward sectors towards online transactions.

KEYWORDS – Demonetization, Digital Transaction, Indian Economy, E-Banking, Black Money