Demonetization and digitalization: The Indian government's hidden agenda

The Indian demonetizations of November 2016 came at an entirely new scale to those January 1946 and 1978. This time around, the Narendra Modi government's measures applied 86.4% banknotes coins in circulation, equivalent 11% GDP. Much analysis has been undertaken on demonetization. largely critical because its disastrous consequences local populations most deprived among them. Our paper adopts a different angle: it argues that demonetization had key impact digitalization payments. We use data from Reserve Bank India 2014 2020 show period brought about decline Automatic Teller Machines (ATM) withdrawals. It equally boosted adoption digital means payments, via Point Sale Terminals (POS) mobile banking. Since October 2016, number POS transactions risen almost threefold, while ATM decreased by one-fifth. current rhetoric is promote as both formalizing economy protecting poor. Its claim unfortunately highly debatable.