Abstract

The case discusses the demonetisation drive that was set in motion by the Prime Minister (PM) of India Narendra Modi on 8^th November 2016 resulting in the scrapping of notes worth INR.15.4 trillion, about 86% of the value of the total currency in circulation.¹ The case outlines the objectives stated by the government behind the demonetisation, its planning, implementation as well as the subsequent challenges that emerged. This unprecedented move provides unique opportunities to analyse change at such a large scale and importance of communication and persuasion in accepting change and changing mindsets. The case analyses questions pertaining to the efficacy of demonetisation as a means for achieving the stated objectives and how the economic, political and social costs of demonetisation which were borne upfront (in the short run) justify the benefits in the long run for the economy and the government.

Learning Objectives                     

The case provides students with the following opportunities:-

• To analyse the objectives, background and mechanics of the demonetisation undertaken in November 2016
• To encourage structured thinking around established principles and theories of management of change.
• To understand the importance of communication in driving change and changing mindsets.
• To evaluate the effectiveness of demonetisation in reducing black money and corruption, the stated main objectives behind this change.