Yameen Yusuf Tharat, Dr. Chandan K. Bora

ABSTRACT

Demonetization widely used word, now a days, has two major effects viz. the first major effect is where this currency was used and where it will be used. Whereas second major change from demonetization would arise as a part of currency deposited in the bank and return is circulation as cash. Before demonetisation individual used to do investment out of savings (Income — Expenditure = Savings). But after demonetisation individual pattern is like Income — Bank deposits = Expenditure. One thing is clearly seen that people cut their spending because of liquidity crunch. It leads to great uncertainty in the minds of investor, where to invest? But as time passed gradually panic situation came to an end. Finally demonetisation leads to a make a market volatile for few more months, post which one can expect consumer demand to pick again. Though Demonetisation has much effect on different sectors of an economy if positive measures taken will give outburst to economy. Keywords: Demonetisation, Effect of Demonetisation, Demonetisation sustainability measures, Demonetisation effect.