Demonetization - Its Role and Impact on Our Society

Abstract

Demonetization is an act by a government of a nation where some or the total currencies are discontinued as a legal tender in the country for some specific purpose. The central government of India declared demonetization of two higher ranking currencies of Rs. 500 and Rs. 1000 on November 8th, 2016 at 8:15 P.M. The ruling government had taken this type of decision for the third time in India. Past experience of demonetization in the domestic territory shows that it was not much successful in attaining its aims and objectives. We have tried to depict the demonetization decision taken by several other nations in the past years and at what extent they had been successful in achieving their set goals. The main objectives of the present study is to analyze the problems faced by common men and business organizations at the initial stages of demonetization, focuses on the forms of corruption in the society and major scams before and after demonetization period, examines whether demonetization is able to put control on naxal activities in the country, whether the decision has put a break to counterfeit currency which is being manufactured in the domestic territories of the neighbouring countries and had illegally installed in our monetary system. Our study also aims to find out if demonetization decision has discouraged terror funding activities by terrorist organizations prevailing in the country and whether the decision has been proved an important measure for stopping military infiltration especially from Pakistan.

Keywords: Corruption, Counterfeit, Currencies, Demonetization, Infiltration, Military, Scams.

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