What People Think of Demonetisation: Pain or Gain?

Abstract

All the actions taken and implemented by the Government of a particular country influences the citizens of that country. In November 2016, the Prime Minister of India declared the banknotes of 500 and 1000 rupees as illegal tender. This demonetisation has been called worldwide as the surgical strike on black money as this move aims to reduce corruption and black money in India. However, despite having positive long lasting effects, this decision was met by mixed opinions among the citizens of India. Some lauded this decision while some called it ‘ill-planned’. Although posing some short term inconvenience for the public like limit on withdrawal, long queues outside banks for deposit, withdrawal and exchange of old currency with the new ones, this demonetisation is expected to benefit the economy in the long run. Therefore, it becomes necessary to study what common people think of this demonetisation move. Hence, an attempt has been made in this paper to understand perception of the individuals with regard to demonetisation along with its likely effects on the economy as a whole. The study is based on the responses collected using a well-structured questionnaire.