DMPQ: What were the objectives of Demonetisation? What were the positive effects?

On 8^th Nov, 2016 86% of the currency in circulation was declared as not legal tenders.

The stated objective of demonetisation was :

• Reduction of black money
• Achieving lower cash/ gdp ration
• An attack on fake currency
• To stop terror financing
• Increasing digital transactions
• Increasing tax net

Positive effects of  Demonetisation are as follows:

• The number of tax fillers have increased.( Additional 9 million)
• The transactions made amounting to Rs 3 lakh crore are under Income tax deptt. Vigilance
• Over 2 lakh shell companies have been deregistered.
• Demonetisation has able to put a hold on unregulated Real estate sector .
• Anonymity with the cash transactions is reduced.
• The whole process has brought more accountability.
• Formalisation of economy- a step toward