This is a group project presented in our classroom in Business Communication subject .

1. WELCOME TO OUR PROJECT
Subject : Business Communication
Prepared by : Saswata , Prithwish , Apurba , Abhinanda ,
Ankita & Sanglap
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3. CONTENTSCONTENTS
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Sl.No Topics
1 Definition of Demonetization
2 Rationale behind Demonetization
3 Features of Demonetization
4 Functioning of Demonetization
5 Effect of Demonetization
6 Success of Demonetization
7 Criticisms of Demonetization
8 Conclusion

4. What is DEMONETIZATION ?
The act of stripping a currency unit of it’s status as legal tender
occurring when there is change in national currency . Prime Minister
of India , Narendra Modi announced the withdrawal of high
denomination rupees 500 & 1000 and issuance of the new rupees
500 & 2000 in exchange of the old banknotes on 8th
November ,
2016 .
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Finance Minister Arun Jaitley took to social media to discuss
the reasons behind such a move :
•Steps against black money
•The new normal
•The adverse consequences of cash

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India has carried out demonetization exercises twice before,
in 1946 and 1978.
However, the 2016 demonetisation efforts covers 86% of the total
currency in circulation (11% of GDP).
The method used by the Government to implement this decision was
through a special legislation the High Denomination Bank Notes
(Demonetisation) Act, 1978.

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 Surgical Strike on the parallel black economy
 Make the corrupt lose their money
 Get everyone to have a bank account
 Towards a cashless economy
 Checking of counterfeit notes
 End of Donations
 Change the mindset of everyone

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 From 8th
November, Rs 500 and Rs 1000 notes will not be used.
Have 50 days to turn them into banks and post offices.
 On November 9 and in some places on November 10, ATMs will
not work.
 Respite for people for the initial 72 hours, government hospitals
& crematoriums will accept old Rs 500 and 1000 notes till 11
November midnight.

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Effect on Parallel economy - Blocking black money & anti-social acts
Effect on Money supply – Little less but will pick up later
Effect on Demand – Reduction in luxury goods
Effect on Prices – Got lower due to moderation in demand patterns

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Effect on GDP - Less GDP due to impact in consumer demand
Effect on Online transactions – Increase in digital mode of transactions
Effect on IT sector – Largely unaffected due to being cashless sector
Effect on Export & Import trade – Slowed down leading to short inflation

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Banks unable to hand public pressure
Short term inflation
High cost of currency destruction
Less habituation to online transactions

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Non availability of bank accounts in rural sector
Economic disaster for a cash-based economy
Problems for tourists, disabled people , wage labourers
Cancellation of marriages and exploitation

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The overnight decision changed the life of many .
As black money holders were worried about the pile of cash they
were sitting on. Many poor daily wage workers were left with no
job and income as owners were unable to pay their daily wage.

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