Literature Reviews on Demonetization

                 LITERATURE REVIEW 

Reserve Bank of India in its report " Macroeconomic Impact of Demonetization - A preliminary Assessment of the demonetization drive on different sectors of the economy and GDP growth. It says that the Informal Sectors. Small and Medium enterprises were greatly affected by demonetization and that is caused a decline in GDP growth and employment generation and manufacturing took a huge hit because of lack of demand. The report says that agriculture also suffered because of lack of funds for purchases of seed and fertilizers, the key input as also payment to labour which happens mostly in cash. The report, how ever says that banks were flush with funds resulting in deduction in interest rate on deposits as also on lending and the financial institutions like LIC and Mutual Funds had been beneficiaries of the drive where deposits increased considerably. There had also been an increase in digital transactions during this period indicating formalization of the economy . How ever GDP growth decelerated to 5.7% . 

Abhani(2017): found that demonetization 2016 would prove to be more successful than the earlier two demonetization exercises under taken by government. He found that people were increasingly using an online mode of payments. He also concluded that though demonetization failed to grab the entire black money. It created fear in the minds of hoarders of black money. 

Muthulaximi (2017): concluded that when money is withdrawn from the system, the country will not get benefitted in short term. She said that though it had a serious impact on corruption, hawala and counterfeit currency, it also had an adverse impact on various sector of economy.

Neeraj (2017) : analysed the impact of demonetization on black money in India and concluded that demonetization only had a backward effect on black money and it hit only the black cash available and it never impacted the future generation of black money. He however stated that it created awareness among the people and also created fear among the black mark sheets.

Sumathy and Savita:  analysed the impact of demonetization on the agriculture sector and found that it impacted agriculture especially small farmers and fruit and vegetable vendors, adversely. 

Shah and yousuf (2017) :concluded that demonetization 2016 was a major step in combating corruption, terror funding and black money. They further concluded that the decision was taken hurriedly without enough preparation, which caused misery to the people. They said that without printing new currency 86% of old currency was withdrawn which had a divesting effect on the economy.

Tandon and kulkarni: analysed the impact of demonetization on black money and corruption and concluded that the drive checked tax evasion and improved the tax collections.

Veera Kumar (2017): stated that demonetization came as big sock. He further said that it was done to counter the problems of Tax evasion and improved the tax collections.

Lokesh Uke(2017): on impact of demonetization said that the main purpose of demonetization is to eradicate black money and diminish corruption. He expressed that Govt of India has been successful to some extent. Demonetization had negative impact for a short duration on Indian Financial Markets but he pointed out the real impact will be shown in future. 

V. Gupta (2016) points: out that the main objective of this move was to curb the black money, corruption and fake menace. 

Tax Reasearch Team (2016) :the main objective is to analyse the impact of demonetization on Indian economy and it shows the impact of such a move on the available of credit, spending level of activity and government finances.

Shambhogue Girish Kumar, A. Prashant,  Bhat, Swati and Shettigar. Chetan (2016) : 

Defined currency ban as a move to stop counterfeit bank notes were allegedly used for terror financing, as well as a surgical strike to black money and corruption in the country. Demonetization leads to cash shortage in the country which proves determinal to number of small business, agriculture and transportation. The shortage of cash led to chaos and most people faced problems to exchange their bank notes. This demonetization step was proved to be the biggest attack on black money and corruption in the history of Indian economy and a movement towards digitalization . It also encourages digital payments. They conclude that demonetization is advantageous in short, medium and long term.

Varishith J.R. (2016) : in his study  stated that demonetization is a historic effort to clean up the decades long corruption and black money.

Shukla. Bal. Govind and Gupta. Hariom (2018) : in their paper entitled " An Exploratory study of Business students perspectives on demonetization in India. With special reference to Allahabad city. They used primary data for their study and conclude that the people actively support any initiative taken by the Government which are basically to eradicate corruption, black money and other threat like terrorism and naxalism in the country.

Dr. Pratap Singh, Virendra Singh : in their work ' Impact of demonetization in Indian economy " said that Indian economy a significant portion of household transaction that are not reported to tax authority or generated through corruption, scrapping the higher denomination money, which is 8++ of currency under circulation, would either result in these being brought into the system or the money just disappearing. If the money disappears the economy will not benefited on the other hand if the money finds its way in the economy it could have a meaningful impact. 

Dr. Ambalika Singh: on impact of demonetization welcomed the move as it was seen for curbing black money. But many were also suffered from this move. The supreme suffers of this move were the informal sector of Indian economy where cashless transaction are minimal. Without adequate and proper planning the demonetization driven cash crunch has rendered Indian economy paralyzed for short duration as the informal sector which comprised of not. Share in GDP has become unviable.