Objectives: To understand the concept of Demonetization, Short term, Long term impact and future implementation strategy
Methods/Statistical analysis: This short communication is the outcome of observation of this author about the Demonetization in the Indian Economy with special emphasis with regards to its impact on the life of common people. The author referred articles and News Paper reports about demonetization, the opinion of eminent academicians in the field of economics and financial accounting and common people were also obtained to prepare this short communication.
Findings:
1) The common people in the ground level are suffering and they like to digest this suffering with the hope that this drive would eliminate the corruption at all levels.
2) The issues of excessive money deposited in the Banks due to sucking of outlawed currency and the ways to use it effectively were deliberated in this short note.
3) It also identified that the cashless transactions would become as the norm of payments in future.
4) The demonetization would eradicate corruption in the longer run.
These findings are helpful for the stakeholders of Indian Monetary Policy makers and Government as it reflect the prevailing outcome of demonetization. The archives of various publication shows that the demonetization is the reason for undue hardship faced by the people and the same finding was observed in this analysis but this short note found that the people understood that their sufferings are temporary in nature and believe that their suffering would be over in the immediate future.
Since this is new to both the Government of India and its people, both are confused thus resulted slight unrest among them.
Application/Improvements:1) The outcome of this short note can be used by GoI, Reserve Bank of India for further refinement of demonetization.