On 8th Nov, 2016 86% of the currency in circulation was declared as not legal tenders.
The stated objective of demonetisation was :
- Reduction of black money
- Achieving lower cash/ gdp ration
- An attack on fake currency
- To stop terror financing
- Increasing digital transactions
- Increasing tax net
Positive effects of Demonetisation are as follows:
- The number of tax fillers have increased.( Additional 9 million)
- The transactions made amounting to Rs 3 lakh crore are under Income tax deptt. Vigilance
- Over 2 lakh shell companies have been deregistered.
- Demonetisation has able to put a hold on unregulated Real estate sector .
- Anonymity with the cash transactions is reduced.
- The whole process has brought more accountability.
- Formalisation of economy- a step toward