Demonetization is the withdrawal of certain currency notes from circulation, with significant instances occurring in 1946, 1978, and 2016. Its purposes include reducing bank lending rates, increasing tax compliance, and combating black money and counterfeit currency, while benefits include a potential reduction in corruption and advancement towards a cashless society. However, it also presents challenges such as cash shortages, difficulties in achieving a cashless economy, and impacts on GDP growth.

1. MIND CRUSADERS

2. PRESENTATION
ON
DEMONETIZATION

3. What is Demonetization
 Demonetization is the 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.

4. HISTORY OF DEMONETIZATION
1st Demonetization ------- January 1946 with the complete ban of currency
notes Rs. 1,000 and Rs. 10,000
2nd Demonetization-------- January 1978 currency Notes of Rs.1,000 Rs.5,000
Rs.10,000 were banned
3rd Demonetization--------8th November 2016 currency notes of Rs. 500 and
Rs.1000 were ceased to be a legal tender

5. PURPOSE OF DEMONETIZATION
 To cut down bank lending rate
 Increasing the number of tax payers
 To identify pockets and persons from where black money is
generated
 Surgical strike on counterfeit currency
 Removing misuse of currency in several political elections.

6. BENEFITS OF DEMONETIZATION
 Reduction of corrupt practices
 Help in fighting with counterfeit currency
 Terrorism will not be able to continue it further For quiet sometime at least
 Improve in banking system as it will slowly head towards the cashless society
 It will reduce tax avoidance
 IN Longer run tax and interests on loan are expected to come down.

7. Demerits of Demonetization
 Insufficiency of cash for retail transactions.
 Increased cost of replacement and modification of ATM’s.
 Difficult to create a cashless society in India.
 Rush at Bank.
 Problem for house wives.
 Difficult situation for weddings.

8. EFFECT OF DEMONETIZATION ON GDP GROWTH
RATE
Growth rate of GDP in November –December 2016-2017 lowered
to 6.9 percent from 7.5 percent of GDP growth of 2015-2016

9. SOURCES
 WIKIPEDIA
 RESERVE BANK OF INDIA
 MINISTRY OF FINANCE (GOVT. OF INDIA)
 ADAMSMITH.ORG
 MONEY CONTROL.COM
 MODERN DIPLOMACY
 FORBES.COM

10. THANK YOU