One, that it was expensive, ill-timed, unnecessary. Critics of demonetisation make two major arguments against it. Demonetisation appears to be the spoiler-in-chief for the RBIs profit. The co observed that the aggregate value of all transactions under electronic …

If you look at demonetisation in isolation and the shock it gave to the Indian economy, it failed. Second, that it did not root out black money and the move has failed since all the money has come back. Though the govt's move to take out 86% of the cash on November 8, 2016 gave an instant surge to digital payments in the months of November and December, the momentum has waned and the volume and value of digital transactions have stagnated, financial services firm Motilal Oswal observed in its recent report. Before demonetisation, Indias money market had the overall circulation of banknotes worth Rs 17.97 lakh crore on November 4, 2016. In essence, demonetisation has not met the government's goal of wiping out black money from the Indian economy. Money In Market Post-demonetisation. The RBI paid Rs 50,000 crore as dividend to the government earlier this month. It's vital to test the safety of your stocks and hold on to the ones that will tide the temporary chaos and gain from the earnings upside in the long term. The government introduced a nation-wide Goods and Services Tax eight months after demonetisation, with the botched implementation of that policy affecting the economy even further. What is the reason behind the failure of demonetisation?

The shock of Indian demonetisation: a failed attempt to formalise the economy April 3, 2018 3.56pm EDT Christophe Jalil Nordman , Isabelle Guérin , Institut de recherche pour le développement (IRD) That's why Tanushree and her team have developed a system to help you weed out the companies that could crumble under demonetisation. Has it failed because there is no black money in India? Image Credit: quora From December 2016, Pakistan will phase out the old notes as it will bring in new designs. Pakistan legally issued the tender a year and a half back, and therefore, the citizens had time to exchange the old notes and get newly designed notes. Demonetisation was the key to this conversion and the political results have been spectacular.