Demonetization In India

15) denominations were taken by the Government of India on 8th November 2016. These paper money banknotes of the Mahatma Gandhi Series have thus ceased to be the legal tender in India. This accounted for 86% of the total currencies in the system. Within an unscheduled live televised address at 20:15 IST on 8th November, the Prime Minister of India Narendra Modi announced that the aforesaid currency notes would become invalid after midnight of your day. He declared the issuance of new notes of Rs.500 and Rs. 2,000 denomination to replace the old notes.

The banknotes of Rs. 100, 50, 20, 10 and 5 of the Mahatma Gandhi Series and Rs. 2 and Rs. 1 continued to be legal tender and were unaffected. The nationwide authorities stated that the decision of demonetization was used due to the following four reasons. 1. To avoid counterfeiting of the current banknotes.

  1. Disposals of components of property, seed and equipment
  2. A New Way to spell it out Elites Rushing the Gate to Board
  3. Higher reward
  4. THE TRAP FROM THE FEDERAL RESERVE

2. To choke the funding of terrorist activities. 3. To crack down on dark money. 4. To check on the problem, use of drugs, and smuggling. In January 1946 It was, that the British Government demonetized the banknotes of Rs. 1,000 and Rs. 10,000 denominations. Thereafter Jawahar Lal Nehru Government introduced new notes of Rs.

1,000, Rs, 5,000, and Rs. The Janta Party coalition government led by Morar Desai demonetized the money records of Rs Ji. 1,000, Rs. 5,000 and Rs. 10,000 on 16 January 1978 to curb counterfeit money and dark money. Value of total bank notes in circulation Rs. Total bank or investment company notes of Rs.

500 and Rs. 1,000 denomination Rs. Oct 2016 Rs Total banknotes in blood flow on 28th. The demonetization was intended to end the black money which was estimated to be always a parallel economy. It had been assumed by the federal government that the honest man will deposit the money and the black money wouldn’t normally come back.

But demonetization has completely failed. Almost the entire black money has become white as it’s been deposited in the banking institutions. Black money has transformed itself into new money notes. So where is the Black Money? Just few thousand crores seized by the government bodies, for which more than 100 people passed away. This is heading to be the most disastrous decision of the Indian Government. Black money is no Indian malady. It is a universal problem.