Demonetization-A way to Cashless Payment System in India

  Prof. Dr. Roshan S. Patel

On 8 November 2016, the Government of India announced the demonetization of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. The government claimed that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism. Prime Minister of India Narendra Modi announced the demonetization in an unscheduled live televised address at 20:00 Indian Standard Time (IST) on 8 November. In the announcement, Modi declared that use of all ₹500 and ₹1000 banknotes of the Mahatma Gandhi Series would be invalid past midnight, and announced the issuance of new ₹500 and ₹2000 banknotes of the Mahatma Gandhi New Series in exchange for the old banknotes. After demonetization, the Prime Minister of India Mr. Narendra Modi has dreamt of cashless economy. To promote digital payments and to reduce the use of cash in the economy, RBI and government both are making several efforts. The attempt made by the government to use digital payment system and avoid cash payment by people as possible as. So by this way government giving pushback to people towards cashless economy. This study also going to analyses the rapid increase in digital payment transactions post demonetization.

Keywords- Cashless Economy, Demonetization, Digital Payments, Indian Economy

Unique Identification Number - IJEDR1704184
Page Number(s) - 1141-1145
Pubished in - Volume 5 | Issue 4 | December 2017
DOI (Digital Object Identifier) -   
Publisher - IJEDR (ISSN - 2321-9939)

  Prof. Dr. Roshan S. Patel,   "Demonetization-A way to Cashless Payment System in India", International Journal of Engineering Development and Research (IJEDR), ISSN:2321-9939, Volume.5, Issue 4, pp.1141-1145, December 2017, Available at :http://www.ijedr.org/papers/IJEDR1704184.pdf