Demonetization is the act of doing away with foreign money as criminal tender. The contemporary shape of cash is stripped from move and brushed off withinside the case of Demonetization. New types of notes and cash are changed via way of means of the vintage ones. Nations regularly completely introduce a brand new foreign money via way of means of changing the vintage foreign money. The maximum critical factor approximately Demonetization is that notes and cash of a sure denomination are banned via way of means of the imperative authorities. There are sure deserves and demerits of Demonetization. When a brand new coverage is delivered via way of means of the authorities, it has to stand numerous demanding situations and obstacles. Demonetization isn't an high-quality one. Advantages of Demonetization Corruption is decreased considerably because of Demonetization. The dealing of black cash stops all of sudden due to Demonetization. Government pushes the destiny of the corrupt human beings in stringent darkness via way of means of enforcing Demonetization throughout the nation.Liability of the authorities is decreased via way of means of the creation of Demonetization. The danger and legal responsibility of liquid foreign money is decreased too. It is pretty handy to deal with smooth cash in location of tough foreign money. Demonetization additionally reduces the legal responsibility notes of the authorities. One of the big affects of Demonetization is that during sure cases, it ends in tax avoidance. The deposited cash might be tracked via way of means of the Income Tax authorities. Hence, folks who are acknowledged for his or her tax avoidance becomes hesitant to do so. This will cause pleasant the authorities exchequer in a right way. The transaction of mortgage may also be beneathneath review. Flow of taxes will increase. This will cause the implementation of various welfare measures taken via way of means of the authorities.Challenges Faced via way of means of Demonetization One of the main demanding situations confronted via way of means of the creation of Demonetization is the connectivity of the net. Since virtual transactions are promoted everywhere, most human beings will cross cashless. But now no longer in each a part of the arena there's good enough net connectivity. In growing nations, sure guidelines have to be carried out first with right infrastructure. Another end result of Demonetization is coins shortage. Chaos can not be prevented because of the lack of coins. This turned into the precise situation at some stage in the 2016 Indian banknote Demonetization. People confronted severa troubles in replacing and depositing the demonetized banknotes. Few undesirable casualties additionally took place due to this ruling.The main poor effect of Demonetization is felt withinside the rural areas. The agricultural region completely relies upon upon coins. Moreover, rural human beings do now no longer own good enough monetary literacy to deal with the situation. In India, nearly 80% of the