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pISSN:0974-0716
eISSN:2582-1245

Editor-in-Chief:  Prof. Dr. A.K. Sharma
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IME Journal
Year : 2019, Volume & Issue : IME Journal 13(1), JAN-JUN 2019
Page No. : 21-27, Article Type : Review Aticle
Article DOI : Received on 20 March 2019, Accepted on 28 May 2019

AN ANALYSIS ON MONETARY FLOW IN AN INDIAN ECONOMY AFTER DEMONETIZATION ON NOVEMBER 8, 2016

Dr. Amit Singh Rathore1,*, Dr. Chetan Sharma2
Author’s Affiliation : 1Director & Professor, Om Kothari Institute of Management & Research, Kota, Rajasthan 326001 E-mail: [email protected] 2Associate Prof., MBA Department, Om Kothari Institute of Management & Research, Kota, Rajasthan 326001 E-mail: [email protected]

Corresponding Author : Dr. Amit Singh Rathore, Director & Professor, Om Kothari Institute of Management & Research, Kota, Rajasthan 326001,
E-Mail:-[email protected]


Abstract

The Money supply is the total amount of money in circulation in the economy at any point of time. In India RBI is the central bank and it is a note issuing authority of the country. The total monetary flow is greatly affected by the demonization. Not only the new currency was printed in place of old notes but also some of the new currency was printed in new denominations.  The total money flow in the economy and inflation are directly related to each other. The money supply is controlled by the RBI by various tools such as Cash Reserve Ratio, Statutory Liquid Ratio to manage money supply in the economy.  In Indian total money in circulation is approximately Rs 17,54,000 crore according to the RBI’s database on the Indian economy and the Inflation rate is 4.88%.

Keywords

: RBI, CRR, SLR, Inflation Rate, Demonetization
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