Impact of Demonetization Policy on Common People Life

Abstract

In 2016, the Indian government decided to demonetize the two biggest denominations of 500 and 1000 rupee notes. These notes accounted for 86% of the country’s cash supply. The government’s goal was to eradicate counterfeit currency, fight against tax evasion, eliminate black money, terrorist financing activities and promote a cashless economy. Demonetization Policy is a master stroke to combat corruption, bribery, unethical tax evasion by the black money hoarders. Black money and corruption affects the growth of the economy of any country. The annual black money economy is conservatively placed at around 20 percent about GDP . GDP recovered to 6.3 percent in Nov to September 2016 from the previous quarter’s 5.7 percent. To eradicate the root problem of black money generation, this policy play vital role. Hence the study of opinion of the public towards the impact of demonetization is mandatory. The result of the demonetization cannot be reaped with a night. It is a lengthy process, even year to take to yield a benefit. The present article has made an attempt to explain the impact of demonetization in the common man life in Virudhunager district.