International Journal of Advanced Research and Development

International Journal of Advanced Research and Development


International Journal of Advanced Research and Development
International Journal of Advanced Research and Development
Vol. 3, Issue 1 (2018)

Demonetization and the poor strata of society


Eric Sarkodie

Demonetization is the process in which a particular currency or valuable mineral is degraded as a legal tender. The Indian economy was faced with short term shocks in demand for goods and services, cash crunch and cash hunt. This occurred upon government announcement of demonetization as a measure to deal with issues of black money, counterfeit money, tax evasion, corruption and terrorism. The Reserve Bank of India subsequently issued Rs.2000 notes and new notes of Rs.500 into circulation from 10th November, 2016 but was short in supply. The supply and circulation of smaller denominations such as Rs.100, Rs.50, Rs.20, Rs.10 and the use of payment systems (i.e. Paytm) were not enough to absorb these tremors. The demonetization did not only impact the working class and the firms negatively but severely increased the woes of the poor strata in the society. The poor strata as the name suggest refers to a section of the population who do menial jobs in both formal and informal sectors of the economy. The formal sector encompasses registered or licensed businesses and corporations. These include public traded companies and businesses which file tax return such as sales tax, income tax, corporate tax etc. The workers in this sector are recognized by law and are provided security and legal protections. These organizations can sue and be sued since they are separate legal entities. The decision of demonetization did not only impacted the working class and the firms negatively but severely increased the woes of the poor strata in the society. The poor strata as the name suggest refers to the section of a population who do menial jobs in both formal and informal sectors of the economy. The author of this current write-up uses a lot of observation and personal experience and both formal and informal interaction among those people in the academia and the labour class on Lovely Professional University Campus.
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How to cite this article:
Eric Sarkodie. Demonetization and the poor strata of society. International Journal of Advanced Research and Development, Volume 3, Issue 1, 2018, Pages 170-173
International Journal of Advanced Research and Development International Journal of Advanced Research and Development