Demonetization has been a complete firework, witnessed and discussed across the globe. Demonetization on one hand increased the reliability of Indian Markets to incorporate huge changes, on the other hand, demonetization itself sent aftershocks throughout the Indian economy.
Demonetization led to widespread public chaos and confusion. Daily wages workers were awfully struck by sudden cash shortage. Tourism got sacked. The unorganized sectors were badly hit. Agriculture industry found itself stuck with the surplus with no buyers to cash it in.
Even after all the downsides, demonetization once again let down public expectations after RBI reported return of almost 99% of demonetized cash putting a full stop to the philosophy of curbing black money via demonetization.
But all the sincere efforts put down by the government and public, together did not go in vain.
The counterfeit money, mostly circulated in highest denomination notes will be curbed, at least temporarily.Demonetisation will surely improve the liquidity position of Indian banks which can be then used for further purposes. The tax defaulters will now be exposed and tax revenue will increase leading to better budget in the coming years. The Jan Dhan accounts though opened in record numbers , were mostly sitting idle all this time with people reluctant to put their money in the banks. Demonetisation will surely lead to mobilization of Jan Dhan accounts.
India has moved forward towards cashless transactions. UPI and BHIM saw significant growth. UPI transaction improved by 89 times and BHIM saw 2.3 times more transactions.
Debit card swiping increased by 65% showing how common man adapted to the cash shortage.
Globally, demonetization established Indian market as strong and stable, ready for changes and reliable for investments. It solidified India's policy making and implementing capabilities at International level.
The entire world witnessed the sheer power and commitment of Indian Banking Sector which played a huge role in clearing the hoax and managing the entropy of post demonetization era.
Though the fact can't be denied that demonetization was a rather rushed and unplanned policy. India is still a cash based economy where most of its transactions are done and preferred in cash. RBI didn't have enough currency to replace the demonetized currency leading to disrupt ATM services, overcrowded bank lobbies and widespread discontentment.
The very idea that black money is stored in cash proved to be a big failure. The assumption was a true mislead. People in remote areas having no bank account whatsoever since ages were now, after demonetization expected to open a bank account overnight , in a already overcrowded lobby filled banks. Thanks to Jan DhanYojna that people in remote areas were able to deposit their demonetized currencies.
Demonetization has led to an ambient space in Indian mass where more productive and demanding policies can be implemented in future leading to better governance and administration. It has left lessons to be learnt in terms of planning and management which in turn will give birth to more evolved policies in future.Demonetisation might be the foundation stone on which other policies may be projected in the future so as to form a full proof system to curb black money. Demonetisation itself cannot be blamed to be a gain or complete loss on its own at this stage of system transition.