A Parliamentary panel report in April 2017 stated that rural homes and "trustworthy taxpayers" have been the worst strike by demonetisation.[228] It stated that it had been not only the lousy that endured, nevertheless the producing sector was impacted way too.[229] In accordance with the panel, demonetisation developed major disruption all through economy, because it was performed without having prior research or analysis.

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The Indian authorities experienced demonetised banknotes on two prior occasions—the moment in 1946 and when in 1978—As well as in each conditions, the aim was to beat tax evasion by way of "black revenue" held outdoors the formal financial system.

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By and huge, Preliminary international reaction was constructive which noticed the move to be a bold crackdown on corruption.

A jewellery shop inside of a shopping mall that has a detect "We take ₹five hundred and ₹1,000 notes", even when they ended up now not valid banknotes. There have been reports of men and women circumventing the limits imposed on exchange transactions by conducting various transactions at diverse lender branches, and by sending hired folks, staff members, and followers in teams to Trade big amounts of demonetised banknotes at banking companies.

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To begin with next demonetization, routines and attacks through the Maoist Naxalite radical groups decreased, which was attributed to insufficient finance pursuing demonetisation.

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Using demonetised banknotes was allowed for the payment of municipal and local civic body taxes, bringing about a soar within their revenue collections.

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The announcement of demonetisation was accompanied by extended cash shortages from the months that adopted, which produced major disruption through the entire economic system.

P. Chandrasekhar and Prabhat Patnaik wrote that demonetisation was avoidable and unsuccessful, though it ruined the economic climate and adversely afflicted the life and rights with the Indian folks.[20]