2. WHAT IS DEMONETISATION ?
• It is an act of withdrawal of a particular form of currency from
circulation.
3. DEMONETISATION IN INDIA
• Our prime minister Narendra modi
announced the demonetisation in an
unscheduled live on 8th November
2016.
• In that announcement , modi declared
that use of all RS 500 and RS 1000
banknotes would be invalid and issued
new RS 500 and RS 2000 banknotes
in exchange for the old banknotes.
4. OBJECTIVE
• A major reason behind
demonetisation was that a big part of
black money was being used for
funding terrorism,gambling & other
social evils.
• Another major objective of the
government is to push the indian
economy towards becoming
cashless.
5. AFTER DEMONETISATION
• During the days following
demonetisation the country faced
severe cash shortage with severe
effects across the economy.
• This move was affected many
sections like banking,agriculture
etc…,but they believed these are
short term effects.
6. DRAWBACK
• The major problem is that ,many
people who had not kept cash as
their blackmoney & rotated or used
that money in other assets like real
estates,gold & so on…were not
affected by demonetisation.
• So,it turned out that only 99% of
demonetised currency came back
to RBI.
7. CONCLUSION
• So,demonetisation alone cannot fight against black money.
• Several other supportive measures are required by the government
to change the economy for good.
