The following are the main features of 'Demonetisation':
(i) No tolerance for tax evasion: The main purpose of demonetisation was to track black money hidden by tax evaders and record them in bank accounts which can be visible for tax purposes.
(ii) Tax administration measure: The process led all individuals to deposit money in the bank accounts enabling the government to recognise possible tax revenues from disclosed Income/savings accounts. This led to increase in the number of tax payers in the economy.
(iii) Cashless economy: The process reinforced the use of digital transactions through banks via internet banking, e-wallets like Bharat Interface for Money (BHIM), paytm, etc, based on Unified Payment Interface, swiping machines for credit/debit cards, etc. Demonetisation is considered as a significant step towards making India is a cashless economy.
(iv) Channelization of savings into the formal financial system: Demonetisation witnessed a fall in seeking cash to make daily transactions as most individuals attempted to use e-wallets, swiped cards or used net banking for transactions.