Impact of Demonetization on Economy: A Step t...

Impact of Demonetization on Economy: A Step towards Cashless Intensive Economy

Author Name : Dr. Kapil Kumar

ABSTRACT: One of the most significant and impactful financial events of our period has been demonetization. As India was a cash-centric economy, a force was required to become a cashless economy. In addition to direct motives such as black money eradication, money laundering, the secret and significant motive was to turn India into a cashless economy. The cashless economy means an economy in which people make purchases using digital payment systems such as credit card-wallets. In order to make the economy less dependent on currency, demonetization was a progressive step. The high value denominations that generated a huge cash shortage in the economy were demonetized by the government. The modern government introduced numerous incentives and discounts on cashless transactions to promote individuals and compensate for the inconvenience caused to individuals. Many incentives for the Indian economy to become a cashless economy were generated by demonetization. This paper stresses the analysis of India's journey towards a cashless economy.