Demonetization Boon or Bane of Financial Inclusion in India

Demonetisation announced on November 8, 2016 was aimed at addressing corruption, black money, counterfeit currency and terror financing. Although demonetization holds huge potential benefits in the medium to long-term, given the scale of operation, it was expected to cause transient disruption in economic activity. The analysis in this paper suggests that demonetization has impacted various sectors of the economy. Secondary data collected from published journals, magazines and RBI reports. This paper finds that the demonetization created a transformation among the consumers and merchants in all the financial services segments.