Demonetisation to oust black money in India: A success or failure?

Demonetization of high valued Indian currency notes of Rs. 1000 and Rs. 500 on 8th of November 2016 has shaken the country by disrupting normal behavior of Indian politics, economy, and society.The ruling coalition quickly articulated this as a big-bang step to unearth black money and attached its success in the elections held in the country post-demonetization as an endorsement of people for the demonetization decision. The opposition, on the other hand, has termed it as an ‘organized loot’ and irresponsible step that adversely affected all sections of society, especially the poor who were dependent on a hard hit informal economy. Now, with 99 percent of the demonetized currency deposited in the banks, the government faces difficult questions, if the move was at all worth? Why the government announced it without due consideration and failed to foresee its adverse consequences. This paper, in the hindsight, revisits the expectations and objectives of demonetization,and criticallyanalyses it’s both positive and negative effects.