Impact of Demonetization on Various Sectors & the Economy

Abstract

Prime MinisterMr.Narendra Modi has declared a war against black cash and defilement. In anencouraged move, he announced that the 500 and 1000 Rupee notes will never again be legitimatedelicate from midnight, eighth November 2016. The RBI will issue new chip based Rs.500 and Rs.2,000 notes which will be set available for use from tenth November 2016. Notes of 100, 50, 20, 10, 5, 2and 1 Rupee will stay legitimate delicate and will remain courageous by this choice. This measure hasbeen taken by the PM trying to address the resolve against debasement, dark cash, fear mongeringand fake notes. This move is required to purify the formal financial framework and dispose of darkcash in the meantime. One reason that provoked the Government to demonetize Rs. 500 and Rs. 1000notes is that their dissemination was not in accordance with the Economic Growth. According to theFinance Ministry, amid 2011-2016 periods, the course of all notes grew 40% yet the flow of Rs. 500and Rs. 1000 notes went up by 76% and 109% separately. Moderately, the economy has become justby 30% which is path beneath the cash course. At a total level, this move will altogether take out thecurrent load of dark cash, fake money and will profit the economy in the medium-to long-run. Thispaper focuses on the impact of demonetization on sectors like bank, Real Estate, various servicesectors and so on.