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Following are the advantages of demonetisation:
- Curbing black money - Demonetisation has helped the government in tracking black money kept hidden by tax evaders. Demonetisation has helped in uncovering a huge amount of unaccounted cash. People had deposited more than 3 lakh crores worth of black money in bank accounts.
- Increase in tax revenue - As a result of demonetisation, people deposited their money in their bank accounts. The number of tax payers has considerably increased. As a result, the government got a good amount of tax revenue which could be used by the government towards the betterment of society.
- Cashless economy - Demonetisation pushed the Indian economy towards becoming cashless. The government succeeded in encouraging people to use digital means for making transactions. According to an estimate, the economy has witnessed a 20% decline in currency in circulation.

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