The document discusses the demonetization that occurred in India in 2016 when the 500 and 1000 rupee notes were made invalid. It provides background on demonetization, noting that India had previously demonetized currency in 1946 and 1978. The major aims of the 2016 demonetization were to curb black money, fake currency, corruption, and move toward a cashless economy. The pros are argued to be reducing black money and fake currency, while the cons include hardship on common people and short-term economic slowdown. In conclusion, the presenters believe the long-term economic and social benefits of demonetization outweigh the short-term costs.

1. Presented By Neha and prathibha

2. What happened on Demonetization?
What is Demonetization?
Demonetization History and Background In India?
Major Aim of Demonetization .
What are the causes of Demonetization?
Pros of Demonetization.
Cons of Demonetization.
Impact of Demonetization on Indian Economy.
Will demonetization slow down India’s growth?
CONCLUSION
Any Question
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3. On 8th November 2016, government of India
had announced that from today onward
rupees 500 and 1000 rupee that note will not
be a legal tender.
Means thatn500 and 1000 rupee notes will
not be accepted by the government.
Public can deposit and change the currency
from the banks post office till 30thDecember
2016.
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“Demonetization is withdrawal of a
particular form of currency from
circulation.”
It is a process by which a series of
currency will not be legal tender.
The series of currency will not acceptable
as valid currency.

5. This is not the First time, When Indian
Currency is Demonetized in India.
Earlier it was done in 1946 with the complete
ban of Rs.1000 and Rs.10000 Notes to deal
with the unaccounted money i.e. Black
Money.
Second time, it was done in 1978 by Govt.
headed by Morarji Desai when Rs. 1000, Rs.
5000 and Rs. 10000 Notes were
demonetized.
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6. Making India A Case less Society such as.
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Online payment
through UPI
Using through plastic
money
Using Cheque
payment

7. There can be many causes of Demonetization
in any economy such as :
Black Marketing,
Currency Storage,
Corruption,
Fake currency in the economy etc.
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9. Attack On Black Money Holders
Death Knell To Fake Currency Rackets
End of Terrorist Funding
Transparency
End of Huge Donations and Hawala
Transactions
Towards A Cashless Economy
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10.  Hawala Transactions.
Shortage of Money to Common People.
Due to currency being sucked out of the
market.
Problem For House Wives.
Short Term Inflation.
 Difficult For Those Families those have
Weddings.
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12. Effects on Parallel Economy
Effects on Money Supply
Effects on Demand
Effect on Prices
Effect on GDP
Effect on Online Transactions and alternative
modes of payment
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 Yes, Demonetization will slow down growth rate in short term and
medium term because people have less money in hands. So demand
is low, that is why it is hampering our growth rate. But as soon as
people get money, markets will be back on track.
 But its long term gain is “fictional” or say “disputed”. Some people
theoretically says it will benefit the economy as government will
have more revenue but others say giving a electric shock to the
economy when its already under distress business sentiment can
send it into coma.
 India is a cash based economy and demonetization will temporarily
decrease liquidity in this economy. Decreased liquidity will lead to
decreased demand which will result in decreased productivity
causing a slowdown in consumer market.
 People have panicked due to sudden demonetization. This will force
them to save and store more money. Thus, a decrease in demand
leading to slowdown in consumer market.

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The advantages are much dominating and
it will be in the long term interest of our
country comfortably outweighing the
disadvantages.
Government need to take all the necessary
steps so as to ensure that there will be a
smooth flow of currency exchanges.
It will make a massive change in our
economy.
We congratulate the entire government and
those hidden brains of our democracy who
brought this decision.
CONCLUSION

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