ISAS Insights

On 8 November 2016, India demonetised around 86 per cent of its currency in circulation by declaring bank notes of 500 rupees and 1000 rupees as illegal tender. The ostensible objectives behind the move were to seize black money and fake currency and facilitate the country's transition to a more digital and cash-less economy. Two months after demonetisation, there is focus on what it achieved. This paper analyses whether demonetisation was able to unearth black money. It also discusses the impact on the Indian economy and the importance of establishing that the pain and hardship caused by the move was indeed worthwhile.