Question

Discuss the usefulness of demonetization as an instrument to check underground economy?

Answer 1

Demonetization played an important role in increasing the tax base of the economy.

The primary motive of the government was to make Indian a cashless economy.

People are increasingly using digital money for transactions.

Majority of people disclosed their income by depositing it into the accounts.

They paid taxes and filled the coffers of the government.