Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change of national currency. The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins. Sometimes, a country completely replaces the old currency with new currency. This paper deals with Impact of Demonetization on Economy. It outlines the effects of demonetization on GDP growth and impact of demonetization on business. This paper makes a special note on merits of demonetization. This paper concludes with some interesting findings along with policy suggestions.
