In the complex and ever-changing international strategic environment, financial security, as an important part of the world, is of vital significance for maintaining national stability and economic development. As the second most populous country in the world, India has a huge economy, but it also faces multiple challenges such as corruption, black money and counterfeit money. These problems are not only cancers in the economic field, but also potential threats to social stability. In response to this problem, India** adopted a bold financial policy in 2016 by declaring the 500 and 1,000 rupee notes out of circulation, requiring people to deposit existing banknotes in banks or exchange them for new currencies for a limited time.
In the early days of this policy, the government was encouraged to use cash alternatives such as debit cards and digital wallets to push India towards a "cashless economy" under the pretext of fighting corruption and black money. The promotion of the policy also received a positive response from the then governor of the Reserve Bank of India. Although the policy has caused a sharp decline in money circulation in the short term, and there are many controversies and challenges in the implementation process, it has achieved the expected result to a certain extent, that is, a substantial reduction in the monetary aggregate. Heading into 2023, the Reserve Bank of India (RBI) has once again made a strategic adjustment by deciding to withdraw the high-denomination Rs 2,000 note from circulation and specify a deadline for public exchange.
Against this backdrop, it is conceivable that similar demonetization actions in countries with serious corruption problems, such as Russia, could have a significant impact on the fight against corruption. Although this practice may cause short-term economic turmoil, it may be a powerful prescription for problems such as corruption and money laundering. On the whole, India's demonetization policy demonstrates its firm determination to rectify the financial order and control corruption. Although the implementation of such policies has brought considerable economic shocks and social challenges, it has also provided an example for the international community in the fight against money-laundering and corruption. This strategy of strengthening financial regulation internally and demonstrating its determination to reform externally has undoubtedly played a positive role in enhancing India's national image and international status.