Demonetization in India: A Catalyst for Cashless Economy

Trinity Journal of Management, IT & Media (TJMITM)
Year: 2017 (Jan-Dec), Volume: (8), Issue. (1)
First page: (28) Last page: (31)
Online ISSN: A/F
Print ISSN: 2320-6470
doi: 

Demonetization in India: A Catalyst for Cashless Economy
Mr.Bishwajit Rout1 and Dr Artta.Bandhu Jena2

1Doctoral Research Scholar, Dept. of Business Management, Fakir Mohan University, Balasore, Odisha
2Faculty, Dept. of Business Management, Fakir Mohan University, Balasore, Odisha
Corresponding author email id:

Received:
15 -04-2017

Accepted:
06-06-2017

Online Published:
27-07-2017

How to cite the Article

This image has an empty alt attribute; its file name is images.png
View on Google Scholar

ABSTRACT

The Government of India has implemented a major economic decision of demonetizing high value currency notes of Rs. 500 and Rs. 1000. The rationale given behind this is that it would curb black money and its flow as most of it would get invalidated. It hasn’t inconvenienced most people, especially those on the wrong side of the socioeconomic and digital divide in India. Yet, the exercise was neither a knee-jerk reaction nor was it without
consideration for the poor. But, between this the Government again provided the scheme of pay tax and converts your black money into white money scheme launched. Even if that does not provide much comfort to those whose livelihoods have been adversely affected, there is the argument that this temporary pain is worth it to ensure the greater common gain of eliminating black money. Modi and his cabinet ministers have now launched a major social-media effort to promote cashless transactions, which include e-banking, debit and credit cards, card-swipe or point-of-sales (PoS) machines and digital wallets. This paper tries to explain the effect of such a move on the obtain ability of credit, spending and extent of economic activities particularly in India. The researcher also seeks to find out how implications of demonetization will helpful to make a cashless economy.

KEYWORDS

Black money, socioeconomic, tax, social-media, ebanking,point-of-sales.