What do you think about Demonetization ?

Soon after the announcement, people rushed to buy gold, a demand that drove prices up, in some cases even to a 60% premium, prompting the tax authorities to conduct surveys, according to the Business Standard newspaper.

In India demonetization was the big issue, before some time but now slowly – slowly effect of demonetization disparaging, Now peoples are not talking more about this issue, as this was affected each person in India, so now this is the hope for Indians to finish corruption, which is the biggest problem of India so Indian Government taken this action to fight against corruption.

The Rs 50 and Rs 100 banknotes were issued in August 2005, followed by Rs 500 and Rs 1,000 denominations in October 2005 and Rs 10 and Rs 20 in April 2006 and August 2006, respectively.

The government emphasized the need to furnish PAN (Indian Permanent Account Number) card details on purchases for accountability purposes, and many jewelry shops that were flouting the norms came under crackdowns. Simultaneously, rumors of a gold ban started to float, which led to agencies ramping up the volume of gold imports – to around 100 metric tons during November, the highest since 2015, as reported by Reuters.

Most of Indians in support of Government decision but also some in against as they lost black money

Many Indians switched to alternative payment avenues – a big deal in a country of 1.2 billion with only 25.9 million credit cards and 697 million ATM cards as of July 2016. The biggest gainers were mobile wallet companies that offer ease of transactions through a large network of partners. Alibaba (NYSE:BABA)-backed Paytm saw a sevenfold increase in overall traffic and a 10-fold jump in money added to Paytm accounts.

This is not the first time that the decision of demonetization has been taken in the country. This has been done twice earlier also. But this time its impact is huge because of the increased circulation of higher denomination notes in the economy

Indian banks played the big role in demonetization, they really done hard for that, banks employees working extra for that.

. It also saw the number of transactions double to five million a day. App downloads for Paytm increased by 300%. Paytm rival MobiKwik also saw its app downloads quadruple and a 20-fold increase in money added to the wallets, MobiKwik Founder & CEO Bipin Preet Singh, told CNBC-TV18 on November 13.

It must be noted that before this monumental, the government had been running a voluntary income disclosure scheme, allowing people to inform the authorities about their undisclosed wealth and convert it into legitimate money by paying 45% tax on it. Hence, to blame the government for not giving a way out to the guilty people would be harsh on the government.

But some bankers try to taken advantage of this and created big corruption and again generated black money into the system.

Prepaid cash cards were another option that customers found useful, and that meant good news for companies like ItzCash. Other alternatives include mobile payments systems linked to e-commerce businesses like Ola Money, FreeCharge, Flipkart Wallet. Ola Money, the payment portal for popular transportation app Ola Cabs, reported a 1500% jump in money added to the accounts in less than four hours.

Some ways using that people’s generated black money again
Gold Purchase in back date.

Interest in Bitcoin also spiked: Sandeep Geonka, co-founder of Zebpay, told Investopedia that his bitcoin exchange was now adding about 50,000 new users per month. "We are seeing an increased demand for bitcoin and India clearly has shortage of supply, making the demand and lack of liquidity push up prices of bitcoin as compared to global exchanges,” said Coinsecure CEO Mohit Kalra. The virtual currency was trading at INR 55,735 in India in November (about $836), compared INR 47,725 (about $712) (Coindesk) elsewhere.

By exchange money from bank back door on a commission with some corrupt bank managers.

Paid to salary to employees in advance.
Deposited money to others bank accounts with a commission.

Over 3 trillion rupees, or over $44 billion in old currency, was deposited with Indian banks in just the first week after the demonetization. There was concern that the uncertainty and short-term liquidity squeeze would take some momentum off the Indian economy, the fastest-growing in the world; in particular, sectors like real estate, notorious as a harbor for cash dealings and black money, were expected to take a hit, with "luxury property prices dipping by as much as 25-30%," said Ashwinder Raj Singh, CEO of Residential Services, JLL India.

But Indian government still working for that to identify those sources and peoples they take advantage of that.

A major achievement of demonetisation has been that it has helped the government in tracking black money. The government claimed that large sums of black money were kept hidden by tax evaders and demonetisation has helped it uncover the huge amount of unaccounted cash.

Peoples in favor of that but still feeling this will not finish corruption and black money from the system, they are saying this is the good step but the government should take more hard steps against corruption and black money.

But experts believed any slowdown would only be short-lived once the systems adjusted to the new normal, especially if the government heeded calls to lower interest rates by groups like the Federation of Indian Chambers of Commerce and Industry (FICCI). Credit rating agency India Ratings & Research maintained its GDP growth forecast for India at 7.8% for FY17, albeit with a downward bias.

A major reason behind demonetisation was that a big part of black money was being used for funding terrorism, gambling, in inflating the price of major assets classes like real estate, gold and other social evils.

After one and a half year of Demonetization, Indian Economy seems to have done away with all the negative impacts of Demonetization. The Economic Survey of India 2017-18, released just before the presentation of General Budget 2018 in Parliament has emphasized that all the negative impact of Demonetization of Rs.500/- and Rs.1000/- currency notes has ended. The Demonetization was announced as a surprise on November 8, 2016.

Demonetization policy of the Government has been termed as the greatest financial reform that aimed to curb the black money, corruption and counterfeit currency notes.
All the people who are not involved in malpractices welcomed the demonetization as the right move.
Demonetization was done to help India to become corruption-free as it will be difficult now to keep the unaccounted cash.

One of the key effects of Demonetization 2016 has been that more people have made digital payments part of their lives moving towards a cashless economy. The details of growth of such digital transactions since January 2016 to August 2017 reflect that NEFT transactions that involved Rs. 7086 bn increased to Rs.12500 bn; Debit cards transactions increased from Rs.2328 bn to Rs. 2700 bn; credit cards from Rs. 214 bn to Rs.366bn and the IMPS transaction which was not used by the people, got a share of Rs.651 bn. The Data shared by Reserve Bank of India reflect the trend: