There are many Benefits & Effects of Demonetization on common people. The possible benefits are as follows. 1,000 Demonetized Currency Notes, which became effective on the 9 th of November 2016 for good and all. Conclusion The Demonetization of 500 and 1,000 banknotes was a policy enacted by the Government of India on 8 November 2016, cease It makes sense when benefits of demonetization are higher. 500.00 and Rs. India, under Visionary Prime Minister Narendra Damodardas Modi’s global hegemony, is undergoing a well-ramified Perfect Transformation due to Demonetization.He in an address to the Nation, announced complete ban on use of Invalid Rs. Lower lending rates – With currency demonetization, money moves from people to banks and financial institutions. Demonetization is the step taken by the Prime Minister to fight against corruption and black money. long-term benefits of demonetization. Increased Savings – As a result of demonetization, people will tend to deposit their cash in the bank rather than at home. Demonetization is a deep psychological strike on black money. Demonetisation's 7 benefits apart from failure to eradicate black money As per latest economic data released on Thursday, India's GDP growth … The demonetization programme has been evaluated in the context of its short-term costs and long term gains. Thus, there is a better circulation of money. On the long-term gain side, a large number of benefits are identified which will appear with time. Short term losses include loss of welfare for the low-income people and decline in GDP growth. India’s demonetization drive has been widely debated ever since the government's surprise announcement in early November 2016 that it would invalidate billions of 500- … Demonetization move has killed the very motivation of those people who have the ability to generate black money. This will help them save more. The cost of currency printing is a burden on the tax payers and is one of the many disadvantages of de-monetization. What Is Demonetization? Demonetization resulted in the decline of India’s GDP by 2 percentage points, unemployment, and various other issues, but still few are some of the important achievements of demonetization, I would like to highlight: 1. The return of almost all the demonetised currency to the banking system may create the false impression that the exercise was a failure, but benefits such as the ability of income tax officials to track depositors and crack down on suspicious transactions could lead to long-term benefits such as better tax compliance, said officials.