Contradicting the popular opinions and views
of some economists who predicted the consequences of demonetization in negative
terms, the Finance Ministry has
said, demonetisation has helped in flushing out black money, eliminating fake
notes and reducing cash in circulation.
In a tweet, the Ministry has said, the total currency in circulation has come
down to almost Rs. 15 lakh crore as of 4th August from around 18 lakh
It said, only 83 per cent is the effective currency in circulation today with
Detailing other benefits of demonetisation for the economy, the Ministry said,
it has dealt a big blow to finances of terrorism and Left-wing extremism.
It said, the move has also helped in expanding tax base, converting non-formal
economy into a formal one and making money accountable.
The Ministry added that the decision has provided a big boost to digitisation
of payments, making India a less-cash economy.