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The Impact of Demonetization

Demonetization is the act of stripping a currency unit of its status as legal tender.

In 2016, India implemented a demonetization policy that invalidated 86% of the country's cash in circulation.

The policy aimed to curb corruption, reduce the black market, and promote digital transactions.

The immediate effects of demonetization were a cash shortage, long lines at banks, and a slowdown in economic activity.

However, in the long term, demonetization led to an increase in digital transactions and a reduction in corruption.

The policy also had a negative impact on small businesses and the informal sector, which rely heavily on cash transactions.

Demonetization was a controversial policy that divided public opinion and sparked protests across India.

Overall, the impact of demonetization on the Indian economy and society is still a topic of debate.