Impact of Demonetization on Payment System

Abstract

Demonetization is the act by the Reserve Bank of India of stripping a currency unit of its status as legal tender. It occurs whenever there is a change of national currency. The new form or forms of money replaces the current form or forms of money. In other words, it is an introduction of new notes and coins to replace the notes which are currently in circulation. Sometimes, a country completely replaces the old currency with new currency. This paper deals with Impact of Demonetization on Economy. It studies the positive impacts of the demonetization on Indian economy. This paper specifically outlines the effective implementation of demonetization decision. This paper concludes with the awareness level among the people for adopting e-system to get back to normal life during the initial hurdles faced by the masses.