2. What is demonetization?
Demonetization is the act of stripping a
currency unit of its status as legal tender.
Demonetization is necessary whenever there
is a change of national currency.
The old unit of currency must be retired and
replaced with a new currency unit.
3. Demonetization of Indian
currency
The demonetisation of ₹500 and ₹1,000 banknotes was
a policy enacted by the Government of India on 8
November 2016, ceasing the usage of all ₹500
(US$7.40) and ₹1,000 (US$15) banknotes of the
Mahatma Gandhi Series as legal tender in India from 9
November 2016.
The announcement was made by the Prime Minister of
India Narendra Modi
The banknotes of ₹100, ₹50, ₹20, ₹10 and ₹5 of the
Mahatma Gandhi Series and ₹2 and ₹1 remained legal
tender and were unaffected by the policy
4. Scenario after demonetisation
Hospitals, petrol pumps and institutes were
exempted for few days.
No deposits should be greater than 2.5 lakhs.
Exchange limit was set to 4000.
5. Purpose of demonetization of
Indian currency
An effort to stop counterfeiting of the current
banknotes allegedly used for funding
terrorism, as well as a crack down on black
money in the country.
The move was also described as an effort to
reduce corruption, the use of drugs, and
smuggling.
6. Advantages of demonetization
in India
Cashless and digital economy
To eradicate corruption and black money.
To remove smuggling and terrorism activities.
Development of economy.
Easy to track the money which is being
exchanged in banks.
7. Disadvantages of
demonetization in India
Lack of cash availability in banks
Reduced money circulations
Increase in fraudulent activities by banking
personnel.
Unfavorable impact on GDP growth
Black money holders searching for different
alternatives to come out from the situation.
8. Reasons for demonetization
To tackle black money in the economy.
To lower the cash circulation in the country
which "is directly related to corruption in our
country,
To eliminate fake currency and dodgy funds
which have been used by terror groups to
fund terrorism in India.
9. Exchange of old notes
The Reserve Bank of India laid down a detailed
procedure for the exchange of the demonetised
banknotes with new ₹500 and ₹2,000 banknotes:
Initially, the limit was fixed at ₹4,000 per person
from 8 to 13 November 2016.
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.
10. Go cashless go digital
E Wallets – Paytm, Freecharge etc..
UPI – Unified payments Interface Apps
Plastic Money – Debit/Credit Cards
Net Banking – Online Fund Transfer
Aadhaar Card – Aadhaar Enabled Payment
System
14. News about demonetisation
For Now, Cash Ban Is Hurting Common
Man. But Change Ahead
Chandan Mitra | Saturday November 12, 2016
Only the fat cat money bags will be left crying
over their loss of power and pelf once the rest
realize the benefits of demonetization far
outweigh the temporary inconvenience.
15. Restaurants Face Steep Revenue Loss But Still
Support Demonetisation
Harnoor Channi-Tiwary | Thursday November 24, 2016
Though many businesses across industries have been
hit, the food industry has faced a direct brunt of this
move.
Team Modi Must Plan For These 4 Big Disruptors
To The Economy
Opinion | Yashwant Sinha | Wednesday November 23,
2016
What is important for us politicians to remember
however is that the aam aadmi is not concerned with
theories. He wants results, and if we fail to provide the
people with job opportunities in adequate numbers,
they will be disappointed.
16. Goa To Be India's First Cashless Society: Defence
Minister Manohar Parrikar
India News | Press Trust of India | Friday November 25,
2016
Strongly backing the demonetization decision, Defence
Minister Manohar Parrikar today said Goa is on its way to
become India's first cashless society.
BJP Launches Drive To Raise Awareness On
Cashless Transactions
India News | Press Trust of India | Tuesday November
29, 2016
In the wake of Prime Minister Narendra Modi's call for a
"cashless society", the Delhi unit of BJP has launched an
initiative 'My Mobile-My Bank-My Wallet' to create
awareness regarding various modes of online and
cashless transactions.
17. GDP At 7.3%, Not Reflecting The Impact Of PM
Modi's Risky Notes Ban
Agencies | Wednesday November 30, 2016
July-September will be the last quarter before the
impact is felt from PM Modi's bold and risky move.
Situation 'Not Absolutely Normal' But Ready For
Pay Day, SBI Tells NDTV
India News | Written by Sreenivasan Jain |
Wednesday November 30, 2016
As banks across India, hit by the cash shortage, gear
up for pay day, a top official of the State Bank of
India or SBI has claimed that India's largest bank is
prepared for the rush.
18. Currency Ban A Step To Make India Economic
Superpower: Rajnath Singh
India News | Press Trust of India | Saturday December 10,
2016
Describing demonetization as a step towards making India
an economic superpower, Union Home Minister Rajnath
Singh said that only a courageous and far-sighted Prime
Minister could have taken such a bold decision.
Tax Collection Has Gone Up After Demonetisation, Says
Finance Minister Arun Jaitley: Highlights
India News | Tuesday January 10, 2017
Finance Minister cited robust tax figures to counter
naysayers who said that the economy took a big hit after
the notes ban. The collection in central excise duty - which
related to manufacturing - surged over 31 per cent in
December 2016 alone, as compared to the December
2015 figures, he said.
19. Impact of note ban on
E-business
With the ban on Rs 500 and Rs 1000 currency
notes, eCommerce players were forced to stop
“cash-on-delivery” payment modes on their site.
Certain eCommerce players like Flipkart and
Snapdeal made restrictions on the order purchase
value to below Rs 1000. With fall in CoD orders,
demonetization has led to jump in digital payment
options for making online transactions.
20. Impact of note ban on Real
Estate
The demonetization move hurted the
customer demands for home and forced
builders to decrease the price of their real
estate properties.
