The big bath of demonetization in India: strike on black money for corporate governance

Abstract

PurposeThis paper aims to focus on the concept of abolition of black money and the demonetization movement started in India for cleaning black money and its impact on corporate world and Indian economy. It discusses the corporate governance effect of the demonetization scheme and various policy measures taken by the government to unearth and curb the black money in the country. It also states the challenges in its process of implementation and implications for future.Design/methodology/approachIt appraises and reviews the concept of demonetization and its process in India since its implementation on November 8, 2016.FindingsThe biggest positive effects of this move were eradication of stocked and staked up money, cleansing of the financial system and improving governance in India. But its implementation had mix outcomes with its own challenges for future improvement.Practical implicationsThe lessons drawn from the experience are expected to pave way for the countries at large.Originality/valueIt is an original paper on demonetization in India, and it is hoped that the lessons learnt thereof will pave the way for the world at large.