The whole India was taken aback when Prime Minister Narendra Modi announced on November 8 2016 that the currencies in the denomination of Rs 500 and Rs 1,000 will be invalid post midnight. But India was no new to demonetization. Demonetisation had had taken place twice before 2016. First time in 1946 just a year before independence and second time in 1978. During the first currency ban the notes of 1,000 and 10,000 were removed which had least impact on the common man as the denominations were much higher. The second note ban was aimed at curbing the black money in the country. But the demonetization 2016 had some additional goals apart from curbing black money from the country. Three important goals were set with some fruitful visions.
• To flush out black money with a vision of bring back black money to the bank and under tax.
• To put a full stop to parallel economy with a vision of merging that to mainstream economy
• To encourage the citizens of the country to digital economy with a vision of cashless India.
Now the question is to what extent the government of India has become successful in its goal? Definitely this step by government was one of the finest ones for economic reforms. And till date demonetization is helping to curb corruption as well as parallel economy. People not involved in any kind of malpractice welcomed demonetization whole heartedly. The major success in this process was to eliminate the fake notes in the market abruptly. As the government had a track of the circulation of currency , it could trap the non tax payers from the parallel economy. Moreover there was a revolutionary change in the mentality of people to use digital money in place of physical currency. It encouraged people to use cashless transactions which in turn made the life of people easier. People, without stepping out of their houses could complete transactions at their finger tip. But…. in contrary to all this when demonetization implemented what percentage of people of our country had a smart phone in their hands? How many Indians were aware of internet? Even though we live in the cocoon of internet world, majority of Indian population is still ignorant about usage of internet. And we expect that strata of our country to go with the flow of cashless India. During the declaration of demonetization common people from different parts of the country faced grave troubles. Starting from standing in queues in front of ATMs for hours to struggling for depositing old currencies in the banks. This made the local business to stand still for long time. People were struggling in the hospitals to pay the fee for the patients. These actually become the part of poor planning of the total process.
Still if we have to find the answer whether demonetization was a success or failure, then we have to change the question as whether demonetization is a complete success or partial success. Or we can say it is a long term goal which needs time to be implemented successfully