DEMONITISATION

ABOUT THE 2016

DEMONITISATION
The Demonitisation of Rs 500 and Rs 1000 currency
notes announced on November 8 last year was easily
the most controversial economic policy decision
taken in India in two decades . On 8 November 2016,
the Government of India announced
the demonetisation of all ₹500 and ₹1,000 banknotes
of the Mahatma Gandhi Series. It also announced the
issuance of new ₹500 and ₹2,000 banknotes in
exchange for the demonetised banknotes. Prime
Minister Narendra Modi claimed that the action
would curtail the shadow economy and reduce the
use of illicit and counterfeit cash to fund illegal
activity and terrorism
 THE ANNOUNCEMENT AND
PREPARATIONS
THE DECISION OF DEMONITISATION WAS
ANNOUNCED ON 8TH NOVEMBER 2016 WHEN THE
PRIME MINISTER NARENDRA MODI ANNOUNCED
NATIONALLY ON 8 P.M.
THAT THE NOTES OF RS 500 AND RS 1000
WILL NOT BE APLLICABLE FOR ANY MEANS OF
PAYMENT OR TRANSCATION FROM 12:00 PM ,8 TH
NOVEMBER ,2016. THE RESERVE BANK OF INDIA
ANNOUNCED THAT THE DEMONITISED NOTES
CAN BE EXCHANGED WITHIN A PERIOD OF FIFTY
DAYS UNTIL 30 DECEMBER 2016.
 OBJECTIVES OF
DEMONITISATION

 TO STOP BLACK MONEY.

 TO HELP IN CREATION OF CASHLESS
ECONOMY.
 TO FORMALISE THE INFORMAL INDIAN
ECONOMY.
 TO REMOVE COUBTERFEIT NOTES FROM
THE MARKET .
PEOPLE STANDING IN QUEUE TO
EXCHANGE NOTES DURING 2016
DEMONITISATION.
OUTCOMES OF 2016
DEMONITISATION