Question

what is demonetization ? explain it's benefit​

Answer 1

The possible benefits are as follows

Lower lending rates – With currency demonetization, money moves from people to banks and financial institutions. Thus, there is a better circulation of money. This will lead to a lower cost of funds which translates into lower lending rates.

Answer 2

Answer:

Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change of national currency: The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins

In sum, while demonetization imposed short-term costs, there have been important benefits via the above-mentioned increase in direct tax collections as a proportion of GDP, and the sharp, persistent rise in digital payments.

Hope this helps you.