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The Great Indian Currency Circus.

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This presentation provides a detailed explanation of the purpose behind the sudden demonetization of Indian currency. It highlights the process of exchange, deposit, withdrawal & payment with the demonetized currency notes.

Published in: Economy & Finance
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The Great Indian Currency Circus.

  1. 1. In a special and sudden address to the nation at 8:00 p.m. on November 8, 2016 on national television , Indian Prime Minister Narendra Modi announced that Rs. 500 and Rs. 1000 will no longer be considered legal tender. However, on deeper inspection, it appears to be well planned and positively motivated.
  2. 2. • Eliminating majority of the black money as it is usually kept in notes of Rs. 500 and Rs. 1000, notes of the highest denomination. • Flushing out counterfeit notes which were being used to finance terrorism & other subversive activities. • Eliminating the use black money to fund the upcoming state elections. • Rendering the money made by illegal betting on the US Presidential elections useless. • By allowing a very small window, it is difficult to convert clack money into white money.
  3. 3. • Rs. 1000 and Rs. 500 notes have been demonetized effective from November 9,2016. • Government hospitals & counters for railway, bus and air tickets will accept Rs. 500 & Rs. 100 notes till 11 November,2016. • Petrol stations authorized by public sector oil companies, milk booths & crematoria & burial grounds will accept Rs. 500 & Rs. 1000 notes till 11 November, 2016. • New series bank notes of Rs. 500 & Rs. 2000 will be introduced for circulation from November 10,2016. • Notes of Rs. 100 and lower denominations and all coins will continue to be legal tender. • Online transactions and card payments will not be affected.
  4. 4. The effectiveness and impact of this step taken by the Indian Government will be visible and felt only after few weeks to months. Immediately, it will result in inconvenience to common man to exchange Rs. 500 & Rs. 1000 notes in his possession & procure the appropriate the appropriate currency denomination for day-to-day survival, especially in view of the fact that enough legal currency may not immediately available for a billion- plus population.

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