RECENT WITHDRAWAL OF RS 2000/ NOTES BY THE GOVERNMENT OF INDIA: A CRITICAL AND CONTRASTING STUDY WITH THE EARLIER DEMONETISATION OF 2016

Abstract

Demonetisation by and large when used as a policy tool to unearth black money, stop terror funding and control inflation have been only partially successful. The demonetisation of 2016 led to more hardship and pain than fulfilment of the reasons stated above. This was because the Indian economy is largely an informal unorganised sector where most of the daily wage earners are paid in cash. The demonetisation of 2023 has been better handled as there is enough time for exchange of ₹2000 notes, and the RBI had stopped printing these notes sometime ago.