<abstract xmlns="http://www.w3.org/1999/xhtml">

<bold>Subject and purpose of work:</bold> T he d emonetisation e xercise i n I ndia a imed t o t ackle t he problems of black money, fake currency, corruption, and terror funding. The drying-up of cash due to demonetisation initially led to a significant increase in digital payment methods. However, large underprivileged informal Indians still prefer cash for their daily needs. The restoration of currency in circulation and increasing cash–to–GDP ratio in the following years questioned the success of digitalisation. Demonetisation has been noted to increase the tax base, tax collection and taxpayers. But this does not compensate for the negative impacts of demonetisation on the economy. Therefore, this paper tries to answer the question whether all of the stated goals will be achieved.
<bold>Materials and methods:</bold> For the purpose of analysis, secondary data were drawn from the Reserve Bank of India (RBI), National Crime Records Bureau (NCRB) and Central Board of Direct Taxes (CBDT).
<bold>Results:</bold> The study found that, except in certain areas, demonetisation has failed to achieve its claimed key objectives. Only minimal short-term gains have resulted from demonetisation and at the same time, it wreaked havoc and harmed the economy.
<bold>Conclusions:</bold> The efficiency of demonetisation as a strategy for combating black money is still up for dispute. If the government had done its homework before executing demonetisation, all of the mayhem could have been avoided. It was a badly thought-out, poorly planned, poorly implemented, and disastrously executed.
</abstract>

Subject and purpose of work: T he d emonetisation e xercise i n I ndia a imed t o t ackle t he problems of black money, fake currency, corruption, and terror funding. The drying-up of cash due to demonetisation initially led to a significant increase in digital payment methods. However, large underprivileged informal Indians still prefer cash for their daily needs. The restoration of currency in circulation and increasing cash–to–GDP ratio in the following years questioned the success of digitalisation. Demonetisation has been noted to increase the tax base, tax collection and taxpayers. But this does not compensate for the negative impacts of demonetisation on the economy. Therefore, this paper tries to answer the question whether all of the stated goals will be achieved.
Materials and methods: For the purpose of analysis, secondary data were drawn from the Reserve Bank of India (RBI), National Crime Records Bureau (NCRB) and Central Board of Direct Taxes (CBDT).
Results: The study found that, except in certain areas, demonetisation has failed to achieve its claimed key objectives. Only minimal short-term gains have resulted from demonetisation and at the same time, it wreaked havoc and harmed the economy.
Conclusions: The efficiency of demonetisation as a strategy for combating black money is still up for dispute. If the government had done its homework before executing demonetisation, all of the mayhem could have been avoided. It was a badly thought-out, poorly planned, poorly implemented, and disastrously executed.

Does Demonetisation in India Achieve its Objectives?

Economic and Regional Studies / Studia Ekonomiczne i Regionalne

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Does Demonetisation in India Achieve its Objectives?"}

Subject and purpose of work: T he d emonetisation e xercise i n I ndia a imed t o t ackle t he problems of black money, fake currency, corruption, and terror...

Does Demonetisation in India Achieve its Objectives?

Published Online: Sep 28, 2022

Page range: 336 - 350

Received: Jul 01, 2022

Accepted: Jul 01, 2022

DOI: https://doi.org/10.2478/ers-2022-0023

Keywords
demonetisation, counterfeit currency, black money, digitalisation, cash-to- GDP ratio

© 2022 N.P. Abdul Azeez, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Does Demonetisation in India Achieve its Objectives?

Published Online: Sep 28, 2022

Page range: 336 - 350

Received: Jul 01, 2022

Accepted: Jul 01, 2022

DOI: https://doi.org/10.2478/ers-2022-0023

Keywordsdemonetisation, counterfeit currency, black money, digitalisation, cash-to- GDP ratio

© 2022 N.P. Abdul Azeez, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
demonetisation, counterfeit currency, black money, digitalisation, cash-to- GDP ratio