Impact of Demonetization on Indian Economy

demonetization
  • The shadow economy or parallel economy will reduce
  • Percentage of transactions done in real estate business & jewellery business via black money will reduce
  • Less import of Gold 
  • More transactions will be done through RTGS/NEFT & Cheques 
  • More transactions via swiping machines at shops
  • Number of online transactions will greatly rise
  • Transactions through Payment Applications like Paytm, Mobikwik, Freecharge will increase.
  • Many currency hoarders will be identified
  • Hawala business will reduce
  • Land prices will reduce
  • More fear of IT department will be there among corrupts
  • More transparency in IT returns due to higher transactions via banks
  • More use of technology in banking sector like UPI will now completely replace IMPS, etc.
  • More involvement of banks in transactions due to lesser money in the market.
  • Merger of banks may take place
  • Increase in Banking Infrastructure
  • More jobs in banking and financial sector
  • Prices of various commodities will reduce
  • People will have fear of keeping large amount of higher currency notes illegally
  • The fake currency will be controlled due to enhanced security features in newly circulated Rs.500 & Rs.2000 notes
  • Money used in terrorism and extortion will reduce
  • Reduction in black money used in elections and campaigning
  • More use of ATMs 
  • Temporary problems & panic among citizens due to currency crunch will be there.
This article was actually a comment on Bankexamstoday by a user - Future PO. This comment was written so well that we are converting it into an article.

I am really thankful to user Future PO. I am trying to contact you, in case you are reading this then mail me - raman@bankexamstoday.com

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