Prof. Dr. S.J. Jadhav , Prof. Dr. D. M. Khandare 

ABSTRACT

Prime Minster Narendra Modi's decision to scrap high value notes of Rs 500 and Rs 1,000 has created a shortage of cash in the system, leading to a lot of discomfort for the general public and businesses. Also, since there is a shortage of newly printed Rs 500 and Rs 2,000 notes, the situation has worsened. The move has also led to a shortage of lower denomination notes such as Rs 100 and Rs 50 that are still legal tender, as people have taken to conserving whatever cash they have in hand. Since our economy is heavily dependent on cash, as only less than half the population uses banking system for monetary transactions, demonetization has hit trade and consumption hard. This paper focuses on positive and negative effect of demonetization and evasion attempts made during this period. Keywords: Demonetization, Legal Tender, Monetary Transactions