How note ban affected economy in india?

 The note ban, also known as "demonetization," affected the Indian economy in several ways. The government of India, led by Prime Minister Narendra Modi, announced on November 8, 2016, that it would withdraw all 500 and 1,000 rupee notes from circulation, in an effort to combat black money and corruption.

The immediate effect of the note ban was a shortage of cash, as people were not able to access their own money due to a lack of new notes to replace the old ones. This led to long lines at banks and ATMs, and a slowdown in economic activity, as businesses were not able to operate normally due to the cash crunch.

The note ban also affected the informal sector, which relies heavily on cash transactions. Many small businesses and informal workers were hit hard by the shortage of cash, as they were not able to pay their employees or purchase goods.

The note ban also affected consumer spending, as people were not able to access cash to make purchases. This led to a decline in consumer demand and a slowdown in the economy.

The note ban had a positive effect on digital payments and e-commerce, as people were forced to use digital platforms to make transactions.

The note ban also affected the agricultural sector, as farmers were not able to access cash to purchase inputs or sell their products.

Overall, the note ban had a negative impact on the Indian economy in the short term, as it led to a slowdown in economic activity and a decline in consumer demand. However, in the long term, it is believed that the note ban will have a positive impact on the economy, as it will help to curb black money and corruption and promote a shift towards a cashless economy.

It's important to note that opinions on the effectiveness of the note ban on the economy vary and the long term effect is not clear yet.