HISTORICAL & CONTEMPORARY PERSPECTIVES OF DEMONETIZATION-IMPACT ON ALTERNATIVE PAYMENT AVENUES

The aim of demonetization in Indian was to eradicate black money, to eliminate fake currency, lower the circulation of cash with subsequent possibility of reducing corruption and financing of illegal economic activities. The advantages sought from efforts of demonetization and GST ranged from improving quantum of tax collection, bringing down inflation rate to increasing transparency in conducting monetary transactions to prevent revenue and tax collection leakages. Demonetization was also plagued with the inherent challenges from the stakeholders of the agricultural sector due to less circulation of cash and the possibility of losses to the business community as the quantum of transactions were expected to reduce substantially. This paper provides a historical perspective of the demonetization initiatives undertaken by different nations across the globe besides India and highlights the subsequent economic implications. The possibility of eradicating black money may lie in implementing equitable & effective tax policies instead of relying only on demonetization initiatives. The article also highlights the potential for alternative payment avenues like credit cards, debit cards, mobile wallets, prepaid cash cards, mobile payment systems linked to e-commerce businesses & cryptocurrencies, etc.