Did demonetisation hit the right notes? Evaluating its impact 8 years later

Eight years ago, on November 8, a televised address by Prime Minister Narendra Modi changed the way India looked at currency notes. That evening, he announced that Rs 500 and Rs 1,000 bills would no longer be valid, effectively rendering nearly 86 per cent of the cash supply invalid overnight.

 

The demonetisation was intended to vanquish black money, reduce counterfeit currency, curb corruption, boost digital payments, and counter terrorism. The Prime Minister emphasised that high cash circulation fostered corruption, and, obtained through corrupt means, it fuelled inflation and illicit activities. In his address to the nation, Modi said: “High circulation