1. DEMONETISATION WHAT WE GAINED, AND LOST

2. RELATION BETWEEN CORRUPTION AND ECONOMIC GROWTH Corruption has prevailed badly agar every stage in India. After independence most political leaders are involved in corrupt activities for self-interest which results in the encouragement of bribes to politicians. Gradually corruption has paralyzed the whole country and it’s system. Black money is a threat for country because it hinders the growth of various projects which may accelerate the development and employment in the economy.

3. NEED FOR DEMONETISATION In 2016, Prime Minister Narendra Modi went on all media channels to announce that his government had decided to demonetise 500 and 1000 rupee currency notes. Reasons behind the demonetisation : 1. To deal with black money in the economy 2. To reduce the cash circulation in the country which will discourage the corruption 3. To eliminate fake currency which supports terror groups to fund terrorism in India

4. ECONOMY SINCE DEMONETISATION Imediately after demonetisation sales of consultant er durables and appliances slipped by 40%. The GDP growth rate of 8.01% in 2015-2016 fell to 7.11% in 2016-2017 due to less availability of cash in cash –intensive industries like manufacturing and construction. It also has adversely impacted the primary functions of banks to issue loans and hs put pressure on them as current holders demand large sums of cash. Maximum of the daily aage workers lost their jobs due to unavailability of cash, it also affected small scale industries in their revenue collection, it also aimed at rendering all fake notes of rupees 500 and 1000 useless and thus drastically affecting illegal funding of terror groups in Jammu and Kashmir, states in the North-East, and Naxali am influenced states, Also public had to queue up outside banks to exchange their old currency for new ones, but the absence of liquid cash has led to people making transactions using cheques or account transfers. They have also switched to virtual wallets like paytm which allows electronic transfer of money which might result in a digital economy where transactions are being recorded and the economy has more white money and this might increase the government’s tax revenue.

5. INDIA- A CASH BASED ECONOMY Demonetization accelerated a shift to digital transactions by almost four years. Yet India remains an overwhelmingly cash economy. The government is trying hard to change this. It may not meet it’s ambitious goal of getting to at least 25 million cashless transactions this fiscal year, but is supporting any move to remove cash. Today there are more than a dozen ways to pay digitally yet people find reaching out for cash in their wallet the easiest way to pay.

6. RBI- REPORT According to the Reserve Bank of India (RBI) annual report Indians deposited over 99% of banned currency notes in various banks. When PM Narendra Modi declared the Rs 500 and Rs 1000 invalid, these two notes accounted for Rs 15.44 lakhs crore circulating in the Indian economy, or 86% of the total by value. Of 15.44 lakh crore demonetized currency notes of Rs 500 and Rs 1000 denominations, only Rs 10,720 crore did not reach to the banks or the RBI. This means only 0.7% of demonetized currency notes were junked in the exercise. Due to this the country paid a huge price for demonetization by way of job loss, closure Of industries and the GDP growth. Indian economy lost 1.5% of GDP in terms of growth that alone was a loss of 2.25 lakh crore a year.

7. OPPOSITION CLAIMS AND GOVERNMENT’S STAND Parties have reacted differently to the government’s demonetization decision. Parties such as Trinamool Congress and the Aam Aadmi Party want a roll back of the decision, which they say is anti-poor. The Congress, the Left and a few others don’t want a roll back but have hit the streets, citing inconvenience cause to public due to faculty implementation of the currency swap. The ruling side has called it a revolutionary move, a surgical strike on corruption and black money. Opposition parties have disrupted Parliament for 10 days to show solidarity with those queuing up outside banks and ATMs for hours to withdraw money. But the government strategists don’t mind disruptions as they believe these paint opposition parties as the supporters of black money.

8. DATA ANALYSIS The RBI spent close to Rs 13000 crore over the next two years to remonetise Indian money market in post-demonetisation phase. New notes of Rs 500 and Rs 2000 were introduced. The designs were markedly different from the recalled ones. The RBI report says that rs 7965 crore was spent in 2016-2017 on printing new notes both old and new denominations. In 2017-2018 the amount spent on printing notes stoodiyo at rs 4912 crore. The money spent on the printing of notes in post-demonetisation was very high. The RBI had spent rs 3421 crore on printing currency notes a year ago that is in 2015-2016 (july to june cycle). Such high spending on note printing impacted the profit of the RBI which reflected in the dividend that it paid to the government. The RBI had transferred a aur plus of rs65876 crore to the government in 2015-2016. But when the amount of dividend de lines of rs30659 crore. It went up again in 2017-2018 but did not touch the mark of 2015-16. The RBI paid rs50000 crore as dividend to the government earlier this month.

9. CHALLENGES AHEAD Corruption continues to be a challenge. Addressing the issue of money laundering, existence of shell companies and tax non- compliance attitude in India, PM urged the community to stay vigilant against the dishonest taxpayers and business units. He emphasized on catalyzing India’s economic Integration through ‘One Nation, One tax, One market. The exercise of demonetization needs to be examined in the context of young India of job creators chasing a dream of becoming a global super power in next few decades. The perception of consumers also sometimes acts a barrier. The benefit of cashless transactions is not evident to even those who have credit cards. Cash, on the other hand, is perceived to be the fastest way of transacting for 82% of credit card users. It is universally believed that having cash helps you negotiate better. Most card and cash users fear that they will be charged more if they use cards. Further, non-users of credit cards are not aware of the benefits of credit cards. Indian banks are making it difficult for digital wallets issued by private sector companies to be used on the respective bank websites. It could be restrictions on using bank accounts to refill digital wallets or a lack of access to payment gateways. Regulators will have to take a tough stand against such rent-seeking behavior by the banks. super power in next few decades. Though bank accounts have been opened through Jan Dhan Yojana, most of them are lying un operational. Unless people start operating bank accounts cashless economy is not possible. India is dominated by small retailers. They don’t have enough resources to invest in electronic payment infrastructure.