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On November 8, 2016, the Indian government made a daring decision to eliminate notes. Whether the central government would successfully erase all of the current black money is debatable, but it was a wise, well-planned, and well-executed move. Here, I've drawn on the insights of a top economist, a financial economist, and smart politicians. We shall learn about the benefits and drawbacks of the note ban decision by the Indian government thanks to this study. This study solely relies on secondary data that was gathered from publications like newspapers, periodicals, websites, helpful books about the subject, etc.

1. To know about actual present outcomes of the note banned decision. 2. To know the potential of the note ban decision. 3. To estimate the consequences for future of the note ban decision. 4. To know the impact of note ban decision on the Indian economy. Scope of the study The people of India, the Indian government, businesspeople, and consumers will all benefit from this study. The government will be able to learn more about the state of the economy in the future thanks to this study. Government policy-making will be aided by the findings of this study. Indian citizens would also benefit from this study since they will be able to make informed decisions about their income and spending because they will be aware of the current and future state of the economy. Any businessperson can make a sensible choice in order to increase income and make a profit in the real world of the market. Finally, everyone would be able to understand how a decision to ban notes would affect. Objectives of Paper 1. To work out the probable consequences Of the Demonetisation. 2. To know the positive and negative impact of Demonetization on India.

Literature review as per the name show it is process of reviewing of research literature which is done by any researchers in past. A literature review is an exploration to identify the related research to make or set relation with current research project with a conceptual and theoretical context:

K.SumaVelly and K.Hema Divya-(2018): In their study on “Digital Payment in India with Perspective of Consumer Adoption” they said that due to demonetization it’s resulted tremendous growth in digital payments. These transformations make a great change toward digital payments and make a more transparency in transactions which empowers the economy of the country. The purpose of this study is to get a research the impact of demonetization on adoption of online payments and digitization of payment system to analyses the level of adoption of digital payment system by the customers’ E-payment system are important mechanism used by the individual and organization as a convenient way of making payments over the internet and at a same time a gateway to technological advancement.

RaghvendraNayak (2018): It was a conceptual study on “Digitalisation of Banking-Issues and Challenges in Rural India”. He studied that the campaign of digital India made a noticeable effect on banking sector of India. Even the development in digitalization still India lagging behind in the implementation of digitalization to banking sector and It is true the digitalization of banking will bring revolution in the Indian economy but it is still needed to implement digital services in rural areas also. It’s related with many conceptual issues and challenges in implementing digitalization of rural banking areas. It studied about the efficiency of banking and enable smoother transactions. It helps to found the factors which enable fast and furious changes in banking sector in adopting digitalization special references to rural are.

Rajiv Ranjan Singh and AnanditaBagchi (2018): They publish a paper no-351 on demonetization “A golden opportunity for widening the taxpayer base”. In their paper they recommended to department act with a focus on the customer and in a non instructive and tax payer friendly manner with the effect of demonetization wider the area of tax payer. All transactional data received since 201 the large amount of historical data and third party available helps to action by government should be based on proper data analysis since six year after March 2017.

RenitaD’souza (2018): He publish his paper on “digitalIndia Getting Incentives Rights” He publish a key chapter in fourth industrial revolution (4IR) such as production and management, which is an outcome of leveraging technology and digital innovation in consider the case of virtual or digital markets. These markets have made physical space constraints redundant and eliminated the need to visit sops on ground. Today it is the time for digital transactions. Digital transaction is positively correlated with The level of education and consumer income. The size of the informal economy of a nation reflects the productivity of cash use lock in persistent cash as the inevitable status queue. There are no shortcuts to becoming irrelevant in this economy banks and other financial institutions will have to consider reconfiguring their business processes and functioning with Smartphone’s.

Dr.S.Manikandan And J.MaryJayakodi (2017): In their research paper An Empirical Study On Consumer Adoption Of Mobile Wallet With Special Reference To Chennai City’ they found that in present world smart phones play an important role in the daily life of people. He found smart phones are made as devices with advancement of technological which were used as money transactions or payments by using application installed in phones by the users of mobile. For this they prepared a structural questionnaire collect data from 150 respondents for finding the factors affecting the consumer for the adoption and usage of mobile wallet to analyses to get the result for their research. After the results finding they clear the online payments were altered by mobile wallet.

Naincy Prajapati and Sanjeev Kumar Singh (2017): The research scholars describe in their study on ‘Impact of Demonetization on Online Transactions. That move of demonetization gives a new path to the Indian economy going towards the digitaleconomy. India becomes a growth country after demonetization with a potential for the companies deals in E-Commerce. The cash crunch in the economy cut down the cash on delivery order in the country and increase the online payments. After all this positive effects people are facing many problems during the cash crunch. This study finds out the effects of online transactions during the period of demonetization. India is country which is a cash dominant country, demonetization is great cause of facing problems in India due to suddenly a huge transformation from cash to non cash.P.PaniBhaskar and D.Prasanna Kumar (2017): In his paper ‘Affect of Demonetization on E- Commerce’. The authors clear about the E-Commerce ecosystem. Before the demonetization in India situation of E-Commerce is the accurate flat form for the development for online business but the situation of demonetization leads the people to adopt the online transactions or net banking in their day to day life. For urban areas E-Commerce is not a new technology but in urban it’s necessary of loyalty towards online business. According to the authors the demonetization in India encourage and insist the Indian people to increase or start the online transaction instead of using traditional method of payment trough cash. Before demonetization E-Commerce companies have huge payment on cash on delivery which decrease after demonetization it will provide a positive change in E-Commerce.

Data Collection

Secondary data has used for the study. Secondary data is collected from library, text books, and journals, articles from news papers and from relevant websites available on internet.

Measurement

Based on  situation  specific  scenarios, expert opinions, and use of the internet for information searches.

Theoretical FrameworkExperts and Economists views about demonetization in India.

1. Amartya Sen(Leading economist; NobleLaureate; recipient of the Bharat Ratna)

According to Indian express, Professor Amartya Sen said that millions of innocent people have deprived from their money and being suffered to get their own money back.

2. Dr. Manmohan Singh (Former Prime Minister; eminent economist; former RBI governor)

Manmohan Singh, former primeminister, RBI governor and economist said this in Rajya sabha demonization was organized prey, according to the Indian Express. In his speech, he said the way the program was implemented would harm India's agricultural sector, which would also harms mall industries and the informal sector of the economy. He also said India's GDP could drop by around 2% as a result of the bank not eban policy. Co-operative banks serving rural areas are non-functional and have limited access to cash. The former prime minister also said the bank note policy was a colossal is management

3. Kaushik Basu (Leading economist; Senior Vice-President and Chief Economist at The World Bank)

KaushikBasu said the Indian government has a policy that anyone depositing money over the 250,000 limit will have to pay heavy fines, according to Indian Express. This policy has created a new black market where large amounts of illicit cash are broken up into pieces and deposited by members of the team. This is a legal way of doing illegal things. Bass said the move hurts innocent people who don't have illegal money but have accumulated cash reserves over a long period of time.

4. Arun Shourie (Former economist at the World Bank; recipient of the Padma Bhushan and Union Minister)

In an interview with NDTV, ArunShury said that the current Indian government's ban policy is not a black money game, but that black money holders have turned their money into tangible and intangible assets, according to Indian Express. I was. People with a lot of black money don't store their money in cash, under mattresses or in burlap bags. They invested black money in real estate, jewelry, the stock market, or other assets

5. Arun Jaitley (Current Finance Minister of India; Senior Advocate, Delhi High Court)

According to Indian Express Mr. Arun Jaitley gives his opinion that the demonetization is good for economy, Indian banks were facing NPA problem since last many years, now banks will have more money to lend for many sectors of the economy.

6. Arvind Virmani (Leading economist; Former India's representative at IMF; Former Chief Economic Adviser, GOI)

According to ArvindVirmanidemonetization is a useful technique to solve the problem of black money, but he also said that it need the deeper study to check the effectiveness of demonetization. Immediate effects of demonetization is negative impact in retail trade in goods and services. Currency for everyday transaction have to be replace soon.

7. Surjit Bhalla (Chairman, Oxus Investments, a Delhi-based economic esearch/advisory firm; Former Professor at Delhi School of Economics; Previously worked at the World Bank)

According to Mr. Surjeet Bhalla BJP government take a Courageous step, and the credit goes to our prime minister Mr. Narendra Modi. If this step would be successful then it will be biggest reform in india. This policy will silently create the money for the economy.

Some other aspects to know the effectiveness of demonetization

1. Why India only canceled 500 and 1000 notes

According to RBF report, the circulation value of 500 rupee and 1000 rupee notes is around 86%. So the government decided to remove this huge amount of money from the market. Also, the maximum number of counterfeit notes is 500 and 1000.

2. The effects of demonization on the Indian economy

Demonetization has somehow reduced consumption activity in the Indian economy. But it made more money in the bank. Consumption was depressed and the market was sluggish at the time of the abolition, but the surge in deposits after the announcement of the abolition at Bank of India has recovered. According to the Reserve Bank of India, deposits exceeded 5 trillion rupees from Nov. 10 to Nov. 18. Because of this, many banks such as SBI, ICICI, HDFC PNB will cut their deposits and be better for the future economy. Percentage Share of Denominations in Circulation by Value in

FY 2015-16

3. Impact of demonetization on loan from banks in India.

(Here MCLR means (Marginal Cost of Landing Rates)
4. Impact of demonetization on Indian financial market
After demonetization Indian financial market has been followed just like secular falling trend. Nifty 50 fell approx 6.3% and S&P BSE Sensex Fell 5.9% from 8 November to 22 November.

5. Impact of demonetization on next financial year

(Hindustan times, 2 feb.2017)According to pranabsen (India's First Chief Statistician) said that, the targeted economic growth rates about 7.5% presented by Indian government for upcoming financial year is over optimistic. He said that the decision about ban on currency note has adversely affected the industrial sector. It affected the IT sector which is 45% of the India's Gross Domestic Product, and approximately 80% of India's employment depends upon IT sector.

6. Impact of note ban on Auto Assets Backed Loan(Business standard, 13 feb 2017)

According to Moddy's investor service demonetization has negatively impacted on Indian auto-asets backed loans in the short term and this will continue till the march end.

7. Impact of demonetization on Real estate

(Business standard, 12 feb 2017) During November December 2016, the mothly average housing sales fell about 40% in the top nine cities like Gurgaon, Ahmadabaad,Kolkata, Chennai, Hydrabaad, Bengaluru, Pune, Mumbai and Noida. Before demonetization the monthly average house sales was 19000 units in July month and 18000 units in October month.

Average monthly sales declined significantly by 40% and 49% respectively from November to December.

The government announced the abolition on November 8, raising hopes of a plunge in property prices, especially in the secondary or resale segment. At the beginning of the third quarter, he had October's best performance, but November and December were both impacted by eliminations, taking 50% of his total sales for the third quarter through October. occupied.

Property developers have worked hard to attract customers by offering additional complimentary perks such as jewelry, electronics, automobiles, vacation packages and appliances with the purchase of a residential unit.

Builders also offer price guarantees, rental insurance and buyback programs to increase confidence in the sector. 

8. Impact  of  demonetization on FMCG industry(Economictimes 24 dec.016)

FMCC industry had gone down by 1-1.5% or Rs 3,840 crore in November, compared to October. The purchase in November had gone down by 6.4% compared to October.

Purchase of personal care items such as toilet soaps, toothpaste and shampoo had seen the greatest fall by retailers. According to consumer point of view, oneout of five housewives had reduced spending by 50% or more. They had cut spends across categories for impulse categories such as biscuits, salty snacks compared to everyday essentials like atta, rice, pulse, sugar.

9. Demonetization will help to fight with black money and reduce corruption.(dnaindia 13 dec.2016)
According to Adi Godrej demonetization may had considerable negative effect at the earlier stage but after some days the situation had improved and it will have a positive impact on the economy. The Chairman of the Godrej group also said that it would help to fight with black money and it will also reduce corruption.
He further said there is a fair amount of cash has come into the economy and more is being coming regularly basis, and this is good sign for the economy.
10. Positive effects of demonetization may not be long term.(Indianexpress, 22 Nov.2016)
According to Fitch Rating the positive effects of demonetization of Rs 500 and 1,000 notes are unlikely to be of long term nature to support banks' credit profile. The rating agency, which rediscovered its negative outlook on the Indian banking sector. The demonetization drive has the potential to raise government revenue and encourage bank lending. The demonetization move could boost government revenue to the extent that helps to move economic activity from the informal to the formal sector. The positive impact on funding conditions will depend on deposits remaining in banks beyond the next few months, and there is nothing to prevent them being withdrawn again.

Demonetization in India is a major effort by the Indian government to combat black money and corruption. This is a bold decision by the government. The main purpose of demonization is to eradicate black money and reduce corruption. The Indian government has succeeded to some extent. Most of the black gold was destroyed. The amount of cash in the bank increased day by day. And we all know that more deposits make a bank stronger. Countries with strong banks are financially strong. In the future, banks will be able to give more and more credit to individuals and the industrial sector, which will allow our country's production to grow, jobs to be created, and our country to develop very rapidly. will be But these are only future completions. The next few months will show the real economic situation in our country. Demonetization has created so many hurdles for Indian citizens, but Indian citizens have faced so many problems because of their willingness to demonstrate. They faced the problem of queuing to deposit and withdraw money at banks and ATMs. Citizens of India faced the problem of reduced consumption of goods due to lack of cash. With several businesses suspended due to lack of liquidity, business owners and consumers face so many problems. When the government made this bold decision to demonize in India, the government did not know that the Indian people would face this kind of problem for a long time. However, the government has occasionally provided Indian citizens with a great many relief measures . Meanwhile, India's financial markets, real estate markets, fast-moving consumer goods sector and auto asset-backed loans all suffered temporary declines. Some economists said the positive effects of the demonstration could be seen in the future. The government has also increased withdrawal limits. There are fewer lines in front of banks and ATMs. Somehow the black money will also come out. Now wait for the overall effect of de-monetization.

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