Demonetization - 2016: A road map towards the development of indian economy

Demonetization is a process by which a series of currency will not be legal tender. Then the series of Currency will not acceptable as a valid currency. The announcement done by our Prime Minister Sri Narendra Damodardas Modi on 8th November 2016 regarding the demonetization of Rs. 500 & Rs. 1000 notes is a bold decision relating to economic policy of the nation. The basic reason behind the decision is curbing all black money in India. Secondary sources of data have been used for study which is collected from various journals, news bulletins, periodicals, and online sources. Hence it can be concluded that apart from disrupting daily lives of common citizen, there are even bigger implication for the economy as a whole. The rural areas in particular, which don’t have formal sources of banking, also deal largely in cash from unorganized sector like land lords, private money lender and Chites. The present paper is an attempt to study the impact of demonetization on Indian economy particularly on business environment. It was found that as an impact of demonetization the interest rate may go down, increases the employability opportunity, decrease the price of the commodity and other product.