Demonetization-Impacts in Urban and Rural Area

It is no new thing how Government of a country can decide and introduce new monetary policies every now and again. But the news of demonetization came as a shock to India as a whole. The move was targeted for flushing the stocks of “black money” out of the economy and getting them legitimate, banked and taxable so that it becomes a part of our economy. The government also claimed that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism. These Government claims before demonetization might sound appealing on hearing, however, they will be seen as mere forecast or assumptions as the case may be. The truth remains that, the true and practical impact of demonetization can only be ascertained after and not before its implementation .The researcher has reviewed various literatures in line with the topic area. In this paper, the Researcher tries to analyze the impact of demonetization, identify potential benefactors and those who bore the heat of this monetary policy with special reference to urban and rural area in India.