What is demonetization?Say no to plagiarism. Get Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get Original EssayOn November 8, 2016, the Indian government announced that from today, 500 and 1000 notes rupees would be a zero currency. About 86% of the total Indian currency is in the form of 500 and 1000 rupee notes and a measure like demonetization throws our economy into a chaotic situation. Demonetization was planned more than 6 months before its execution and remained confidential between 10 people, including our Prime Minister and the Finance Minister. The Indian public has been asked to deposit all their old money before December 31, 2016 in nearby banks and POs. Besides canceling the currency, our government introduced new Rs 500 and Rs 2000 notes and urged people to move towards a cashless economy. Our country is 90% dependent on paper money and a step like demonetization has led the country into a chaotic situation. As of October 28 of the same year, the total currency was valued at ₹17.77 trillion. Printing of new currency started around May 2016. With the reduction in cash transactions, alternative payment methods were found like e-wallet apps, digital transaction systems, plastic money (debit cards and credit), etc. Demonetization has helped increase demand for all mobile wallet companies. The mobile wallet brought transparency to the system and it made it easier to track financial transactions online. After the government announced demonetization, e-wallet companies like Paytm launched a massive and relentless advertising campaign. Mobile wallets have become a new trend in India and companies like Paytm wanted to take advantage of most of this trend. Paytm, a company owned by One 97 Communications, made the largest amount. profit thanks to demonetization. Every vendor, gas station, auto rickshaw, etc. accepted Paytm cash. The number of people using Paytm regularly increased by 435%, downloads on the Play Store doubled and transactions completed and transactional value increased by 250%. Currently, more than 3 million stores in tier 1 and 2 cities have started accepting these e-wallet transactions. On the other hand, the Indian government has launched its own application called BHIM which allows electronic transfers between bank accounts without internet access. To use BHIM, users had to enter a 12-digit Aadhar number into it. BHIM can run on any smartphone without Internet access. It was a booming time for all mobile wallet companies during the first two months after demonetization (November-December), according to RBI, mobile wallets had 34% market share of total payment protection insurance (PPI). transactions which amounted to around 170 million in December 2016, but in January the market share saw a decline of 1% to become 33%, then a significant drop to 29% in February. Paytm was trying its best to increase its user base during its booming period by doing a lot of advertisements on different channels like TV, newspapers, etc. Paytm was downloaded by at least 17% of the total mobile population in early 2016. After banks, their own UPI apps for banking transactions, usage of e-wallets fell thereafter. From February,.