The government resorted to the measure of demonetisation to curb:

1. Corruption.
2. Counterfeiting.
3. Terrorism.
4. The accumulation of black money generated by income not declared to the tax authorities.

Demonetisation emphasises the govenment's determination to penalise the illicit activities and the association wealth. Through demonetisation the government wanted to reduce the levels of corruption. It is an attempt to crack down on black money showing that tax evasion will no longer be tolerated/ accepted.