In one of the historical reforms of the economy of India, Rs 500 and Rs 1,000 notes were banned effective Tuesday midnight. This was one of the boldest movements by the Government of India announced over a 40-minute speech. This scheme has received mixed reactions till now. The majority of industry and commoners alike reacted to this decision with overwhelming support. Whereas some sections are of the opinion that it is a draconian scheme causing hardships to people. It has also been argued that it would’ve been better if two to three days’ notice had been given. That would, in fact, have defeated the entire purpose of the scheme because by then the money would have been circulated. Overall, this scheme is going to impact the businesses, the aam admi, and financial institutions – all at some level or the other.

Heavy adverse impact on the following sectors:

• Black money hoarders

The driving force behind this historical decision was to eradicate black money.A recent study had pegged India’s black market economy at over Rs 30 lakh crore or about 20 percent of total GDP.This is even bigger than the GDP of countries like Thailand and Argentina.