Effects of Withdrawal of Rs. 2000 Note Circulation by RBI on the Indian Economy
Shivanand Rathod
Guest Faculty,
Department of Studies and Research in Economics
Rani Channamma University, Belagavi, Karnataka, India
Abstract:
The Note withdrawal from the economy is not new phenomenon, Due to its potentially extensive impact on the complicated structure of the Indian economy, the Reserve Bank of India's (RBI) recent decision to eliminate Rs. 2000 notes from circulation sparked intense discussions and arguments. This carefully designed strategic approach indicates a landscape with a delicate combination of alluring options as well as difficult challenges, driven by the ultimate goal of decreasing the prevalent problems of hoarding and black money. The purpose of this paper is to carefully explore a variety of aspects of the withdrawal of Rs. 2000 notes, paying close attention to its historical context, justification, and related issues. In 1946 and 1978, the Indian government demonetized banknotes with the intention of preventing tax fraud through the use of "black money" kept outside of the legal economy. The Indian government announced the demonetization of all 500 and 1,000 rupee banknotes from the Mahatma Gandhi Series on November 8, 2016. Additionally, it announced the release of fresh 500 and 2,000 rupee banknotes in place of the ones that were demonetised. According to Prime Minister Narendra Modi, the move would diminish the shadow economy, boost cashless transactions, and decrease the use of illicit and counterfeit money to finance crime and terrorism. And the government has now withdrawn the 2000 rupee notes. The major objectives of the study are To Comparing Demonetization in 2016 with the present move, To know the reasons of Rs. 2000 note withdrawal in India, To know the Pros and cons from withdrawal Rs. 2000 note in India, To study the effects from withdrawal Rs. 2000 note in India.
Key words: Note withdrawal, Reserve bank of India, Economy, Demonetization
