Demonetisation and its impact on Indian economy

Demonetisation is the act of stripping currency units as a legal tender. In this act, the old unit of currency must be removed and substituted with a new currency unit. The research has come across with the number of significant impact of demonetisation held in the past reference to India. Present study is focusing on the recent demonetisation held on November 2016. The research has done an explanatory, analytical, research trend and observation analysis taken as a tool for the study. The objective of this paper is to analyse the recent demonetisation and its impact on Indian economy. As a result of the impact of demonetisation majority showed the positive result on the economy by removing black and fake money from the economy, lowering inflation, enhance liquidity position of the banks which can beutilized further for lending purpose and transitioning India to a cashless economy.