Impact of Digital Money Post Demonetization on the Indian Economy - A Descriptive Study

The use of digital money has become widespread with astonishing spread all over the country, particularly after demonetization. At the phase of pre-demonetization the entire country used physical cash for their day to day transactions, but after demonetization, the use of digital money increased drastically. Digital money was used mostly in urban areas in the form of e-wallets where banks acted as intermediary. Demonetization is an economic policy that was implemented by the Government of India in which 500 and 1000 rupee notes were eliminated from its legal tender and a new 500 and 2000 rupee note was introduced. This policy was taken by the Government to go towards Cashless Economy. Through the introduction of this policy, it has helped Government in many ways such as curbing black money, stopping terrorist funding and has also increased the revenue to the Government. The use of digital money has increased after demonetization in which people were forced to store their money in their bank accounts which helped them transact at less cost and safety, also helped the Government to track their income where banks played a major role in it. This paper studies the impact of digital money post demonetization on the Indian Economy.