CAUSE

One question. One truth.

“Why was demonetisation done in 2016?”

The 2016 demonetisation was implemented to curb black money and counterfeit currency by invalidating high denomination notes.

Medium confidenceStructural

CURRENT STATE

This policy caused a sudden liquidity crunch as 86% of currency in circulation was withdrawn, disrupting cash-dependent sectors and pushing digital payments adoption. It also exposed weaknesses in cash management and financial inclusion.

Have your own question?

Ask CAUSE →

askcause.com