Finance plays pivotal role for the success of economic development at large. The recent announcement of demonetization made tremendous impact in society. In this parlance, Demonetization refers to withdrawal of a specific form of currency from circulation. It considered as necessary whenever there is a change of national currency. The old unit of currency to be removed and substituted with a new currency unit. This move will help the government to track the black money. The currency was demonetized first time in 1946 and second time in 1978. The currency is demonetized as third time by the current Narendra Modi government on Nov. 2016. This is the bold step taken by the government for the betterment of the economy and country. The objective of this study is to discuss the impact of recent demonetization on the Indian system and also challenges of implementing monetization in the country. In the wake of demonetization, there have been multiple debates on whether the “radical” and “bold” step taken by the Central government was a judicious, well-thought out and well-implemented step. Besides this paper also focuses on pros and cons of recent announcement pertaining to the concept of demonetization.