BY:- PINKI

BHARTI

Demonetization

Content Meaning of demonetization History Latest demonetization in India Exchanging old notes Advantage of demonetization - Tax collection - Digital India Disadvantage of demonetization - Cash shortage - Deaths Short comings

Meaning of demonetization

Demonetization refers to change the existing currency with new currency.

Demonetization is a generations memorable experience and is going to be one of the economic events of our time.

History India’s first demonetization was in January 1946,

banknotes of 1,000 and 10,000 rupees were ceased and new notes of 1,000, 5,000 and 10,000 rupees were introduced in 1954.

The Janata Party  government had again demonetized banknotes of 1,000, 5,000 and 10,000 rupees on 16 January 1978.

Latest demonetization in India

November 8,2016 a day when the Indian Government launched a “surprise attack” against black money in the economy.

Indian Government ceased the use of 500 & 1000 rupee notes from midnight at 8:15 of 8th Nov, 2016.

He also announced the issuance of new 500 & 2000 notes in the exchange of old notes.

Exchanging old notes

Initially exchange limit was set to 4000.

This limit was increased to 4,500 per person from 14 to 17 November 2016.

The limit was reduced to 2,000 per person from 18 November 2016.

All exchange of banknotes was stopped 30th december 2016.

Tax collection Digital India Cashless india Paytm Credit card Debit card

Advantage of demonetization

Disadvantage of demonetization

Cash shortage Deaths

Short comings

Common man effected for day to day transactions.

Limited cash flow. Demand and supply of goods effected . ATM’s were not properly calibrated for new

denominations.

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