A study of remonetisation and its impact on economic growth

Remonetisation in general means restoring status of legal tender. In simple terms the government to restore the currency notes or something with equivalent value to its formal position as legal tender. In India, the process of restoring the currency in form of Rs. 500 and Rs. 2000 notes after demonetization is remonetisation. It is very hard process to work. An analysis of publicly available data suggests that 98.8% of demonetised currency was returned to Reserve Bank of India by 13 January 2017. The data suggest a sharp slowdown in the remonetisation process in mid-December 2016, which reached only 80% of what was demonetised by the end of April, 2017. Clearly, remonetisation has been far too slow, and its consequences on the informal economy, though invisible to official data, are a matter of serious economic, political and social concern. This study analyzed the impact of Remonetisation on economic growth in India.