International Journal of Commerce and Management Research

Authors
K Sreenivasulureddy, BGV Phani Madhav, D Swaroopa

Abstract
Demonetization is the act of strip a currency unit of its status as legal tender. The PM announced on 8th of November, 2016 about the withdrawal of legal tender of 500 and 1000 currency note in the late evening. The Indian government claimed that this demonetization is required reasons for stopping the funding of terrorism, facing the problem of fake Currency, for making the black money worthless, for reducing the corruption, etc. In terms of value, the annual report of Reserve Bank of India of 31 March 2016 stated that total bank notes in circulation valued to 16.42 lakh crore of ` 500 and ` 1000 banknotes. Banks started accepting deposits from 10th of November but within a period of 18 days around half money has been received by the banks. The show is still on. But, between this the Government again provided the scheme of pay tax and converts your black money into white money scheme launched. Prime Minister Modi decision effected totally the whole country was stunned. This decision caused sensation in the whole country. Social Media was flooded with messages and information. People started counting the trash they had accumulated for years legally or illegally. The main objective of this move was to curb the black money, corruption and fake money menace. All the people but those who were indulged in malpractices welcomed the move. The entire restriction shook hand against this move under one falsification or the other. They called this decision a draconian law and required the govt to move back it. Tirades were settled on to concentrate on the decision. Govt also did counter strikes.