DEMONETISATION: A WAY TO PUMP OUT BLACK MONEY IN INDIA

Abstract

Demonetisation refers to deprive of value for official payment. On 8th November 2016, the Demonetisation of Rs.500 and Rs1,000 currency denominations was taken by the Government of India. This is because of corruption and black money is the major obstacles in our country and we knew terrorism is a frightening threat, but who funds these terrorists? Our enemies they use to produce and circulate fake currency to sponsor terror and this was proven many times. In order to this, the Government of India took demonetisation factors to eradicate corruption in India. The advantages are much dominating and it will be in the long term interest of our country comfortably outweighing the disadvantages. Demonetisation affects on Indian economy for shorter term in terms of Liquidity crunch, deflation, etc. The government is taking all the necessary steps and actions to meet the currency demand and ensure the smooth flow of new currency. So as to ensure that there will be a smooth flow of currency exchanges.