Demonetisation has become a much discussed and debated term post 8thNovember2016. Prime Minister NarendraModi took to national television on 20;00 hours IST, in an unscheduled address to the nation to announce the demonetization of the Rupees 500 and Rupees 1000 currency notes of the Mahatma Gandhi series with almost immediate effect. The ban on the two currencies which together accounted for almost 15.44 lakhcrore or 86 % of the total currency in circulation in India was to be enforced from midnight onwards ie roughly 4 hours from the time of announcement leaving almost no time to the citizens to respond. More than a year after the event and almost 99% of demonetized currency legally converted opinions continue to remain divided and as extreme as on day one. But the concept of demonetisation seemed to have gained traction globally as three countries namely Australia, Pakistan and Venezuela have announced plans for demonetisation of their currency post November,2016 albeit in varying degrees .The current paper is an attempt to study the concept of demonetisation and investigate the history of demonetisation with its resultant impact on the economy with special reference to India.The study is based entirely on secondary data obtained from website publications and reports of reputed institutions.