Withdrawing units of money from circulation is demonetization; units of money are denied the status of legal tender. Demonetization is defined as a process by which currency units will not remain legal tender. The currency notes will not be taken as valid currency. Demonetization is a step taken by the government where currency units cease their status as legal tender. Demonetization is a basic condition to change national currency. In other words, demonetization can be said to be a change of currency where new units of currency replace the old one. It may involve the introduction of new notes or coins of the same denomination or completely new denomination. The study attempts to understand meaning and the sector wise impact of demonetization. This study also gives an insight into the positive and negative impact of demonetization on selected research areas.