Demonetization: A Step against Black Money (With Special Reference to Counterfeit Money)

Author:Jyoti Khare*

Abstract:
The government, from time to time, formulates fiscal policies that are meant to spur economic growth. A lot of black money circulates in the economy, because the sources of income are not known to the government and that are also unaccounted. For removing the black money, a multifaceted policy is needed. Demonetisation is a step that combats this problem up to great extent. By demonetization counterfeit notes could be assessed. To mop up this money out of circulation, the government can demonetize so that the money holders are forced to deposit the cash with the banks or lose their wealth. Through this paper, it has tried to understand that how demonetization strategy works in detecting the black money as counterfeiting money, forgery and money laundering activities. PTI stated on 30 August, 2017 “with over Rs. 15 lakh crore of junked currency coming back into the banking system post demonetization.’’ And for Indian economy that is primarily cash transaction based economy, removing 86% of the money in circulation is indeed a brave step taken by government.

Keywords:Key words: Demonetization, Black Money, Counterfeit currency.

DOI:

International Journal of Trade & Commerce (Vol: 7 Issue:1)