"Note bandi," also known as demonetization, is a policy measure in which a government withdraws a specific denomination of currency from circulation, typically to combat issues like black money, counterfeit currency, and tax evasion. The impact of demonetization can vary based on the specific circumstances and implementation. While demonetization can have positive impacts, it's essential to consider that it can also have negative consequences and mixed results. Here are some potential positive impacts of demonetization:

Reducing Black Money: Demonetization can help reduce the circulation of unaccounted or "black" money, as individuals holding large amounts of undeclared cash may be forced to deposit it in banks or exchange it for new currency, making it easier to track and tax such funds.

Promoting Digital Transactions: The move can encourage people to shift from cash-based transactions to digital payment methods, which can enhance financial transparency, reduce the shadow economy, and promote a more formal economy.

Curbing Counterfeit Currency: By introducing new currency notes with advanced security features, demonetization can reduce the circulation of counterfeit currency, leading to greater confidence in the currency system.

Enhancing Banking Penetration: People who were previously unbanked or underbanked may open bank accounts during demonetization, expanding financial inclusion.

Lowering Interest Rates: A reduction in the amount of currency in circulation may lead to lower interest rates, which can boost investment and economic growth.

Increasing Tax Compliance: With more money in the formal banking system, it becomes easier for the government to track transactions and enforce tax regulations, potentially increasing tax compliance.

Boosting Real Estate Transparency: Real estate is one sector where black money has often been used for transactions. Demonetization can lead to more transparent property transactions, potentially reducing speculative bubbles and making housing more affordable.

It's important to note that the success of demonetization depends on various factors, including the scale of the operation, the effectiveness of the government in implementing and enforcing the policy, and the overall economic and political context. Demonetization can also have negative consequences, such as disruptions to the economy, inconvenience to the public, and potential negative impacts on certain sectors, particularly those reliant on cash transactions.

The long-term impact of demonetization on the economy and society is a subject of debate, and its success or failure may vary from one case to another. Careful planning and consideration of potential side effects are crucial when implementing such a policy measure.