This Presentation will give you knowledge regarding the Demonetisation of currency of RS 500 & RS 1000 in India. It will also give the knowledge of its IMPACT, ADVANTAGES/DISADVANTAGES etc.

1. Subject – MACRO ECONOMICS
PRESENTED BY : MEET SHAH

3. • In one of the historical reforms of the economy of India,
₹500 and ₹1,000 notes were banned effective 08th Nov
2016 Tuesday midnight.
• This was one of the boldest movements by the
Government of India announced over a 40-minute
speech.
• The majority of industry and commoners alike reacted
to this decision with overwhelming support.
• Whereas some sections are of the opinion that it is a
draconian scheme causing hardships to people.

5.  Increased fake higher denomination
currency notes.
Reasons for Banning & Introduction of new
Indian Denomination Note
 Fake notes used for Anti-National & Illegal
Activities.
 Misused by Terrorist for hoarding Black
Money.
 Non-Disclosure of Source of Income

6.  ATM withdrawals restricted to ₹2000 per
day per card upto 18th Nov 2016 & ₹4000
per day per user from 19th Nov 2016
onwards.
Some Restrictions over withdrawals
 Withdrawal of cash against cheque upto
₹10,000 per day and upto ₹20,000 per
week upto 24th Nov 2016.

7. Negative Impact of Banning notes in the economy.
 Less Business Activities.
 Chance of losing business customers.
 Chance of losing job for daily workers.
 Insufficient funds for trade.
 Delayed payment of debts by firms which leads to
liquidity crunch.
 Foreign money still remains untapped.

8. Favourable impacts of Banning notes in the
economy
 Bank deposits will spike.
 Deflation in the economy is expected.
 Demand for Gold increases.
 Usage of online transactions.
 Replacement of card transactions with cash
transactions.
 Increased demand for bank accounts.

9. Where can the notes be exchanged?
 Issue offices of RBI
 Commercial Banks
 Regional Rural Banks
 United Community Bancorp
 State Co-operative Banks
 Head Post Office/Sub Post Office

10. Procedure for Exchange of Notes up to
₹4,000.
• Visit any Bank branch with valid ID Proof.
• Fill the ‘Application for Note Exchange’
• Submit the notes to the cash counter along
with the Application and Xerox copy of valid
ID Proof
Procedure for Exchange of Notes
above ₹4,000
• Visit the Bank branch where your account is
maintained along with valid ID Proof (in case of
maintaining account in other bank, provide bank
Account number for NEFT).
• Fill the ‘Application for Note Exchange’
• Submit the notes to the cash counter along with
the Application and Xerox copy of valid ID Proof.
• An amount of ₹4,000 will be provided to you in
cash and above ₹4,000 will be credited to your
Bank Account.

11. Rs. 2000 Currency Note – A
Glance
• 1. See through register where the numeral 2,000 can be seen when
note is held against light
• 2. Latent image of 2,000 can be seen when the note is tilted
• 3. Devanagari denomination
• 4. Portrait of Mahatma Gandhi
• 5. Micro letters 'RBI' and '2,000'
• 6. Colour shift security thread with 'RBI' and '2,000'
• 7. Guarantee clause, Governor's signature and RBI emblem on the
right
• 8. Watermarks of Mahatma Gandhi and electrotype 2,000 numeral
• 9. Number panel with numerals growing from small to big on top left
and bottom right sides
• 10. Denominational numeral with Rupee symbol, 2,000 in colour
changing ink
• 11. Ashoka pillar emblem
• 12. Rectangle with Rs.2,000 in raised print on right
• 13. Seven angular bleed lines in raised print
Rs. 500 currency note – A Glance
• 1. See through register in denomination numeral
• 2. Latent image of the denomination numeral
• 3. Denomination numeral in Devnagari
• 4. Orientation of Mahatma Gandhi's portrait changed
• 5. Windowed security thread changes from green to blue when
note is tilted
• 6. Guarantee clause, Governor's signature, RBI emblem shifted
towards right
• 7. Portrait and electrotype watermarks
• 8. Number panel with numerals growing from small to big on
top left and bottom right sides
• 9. Denomination in nuemrals with Rupee symbol in colour
changing ink (green to blue) on bottom right
• 10. Ashoka pillar emblem on right
• 11. Circle with Rs. 500 in raised print on the right
• 12. Bleed lines on left and right in raised print

12. Advantages –
•Demonetisation will completely destroy the black money – Around 3-5% people have black money in India. They have Billions of black money
held in their houses or unaccounted cash on which no tax has been paid. This money is earned by corruption and illegal businesses. Due to
demonetization government can track the defaulters. It will leave no option to these defaulters either they have to disclose the money or let it be
destroyed.
•No more funding of Terrorist Organizations – It will stop all the funding to illegal money laundering, arms smuggling, gambling., etc. Because of
demonetization all the Terrorist activities will be stopped due to lack of funding.
•Big increase in Tax Revenue – With this bold decision India can see great growth in tax revenue. The benefit is people are disclosing their income
by depositing money in bank accounts. Government will get a good amount of tax revenue. It will be used in transformation of country by providing
great infrastructures, better hospitals, Schools, roads and many facilities to poor people.
There are more advantages and some are long terms like transparency in real estate, corruption may decrease, cashless economy and bank loans will
be easily available at reasonable interest rates, fake currencies will be worthless.
Disadvantages –
•Inconvenience to Common People – Common People are in big trouble because of the non availability of cash for some days. Whole country is
standing in long queues. Banks and ATMs do not have enough currencies to entertain everyone. You can see at your nearest ATMs and Banks . Over
100 people have been already dead in 3-4 days. There are more than 30% who don’t use bank accounts.
•Currency Destruction – Black money holders are burning and destroying the cash. This is going to be a big loss to economy. Dollar prices have
already crossed 68 rupee. The decision to change all the currencies will at least cost Rs. 12,000 crores to Reserve Bank of India(RBI).
•Big fishes will be left out – Big fishes means the defaulters who are actually responsible for black money will be left out. Since, they have money in
form of lands, golds or they have money in foreign accounts. They will not be in trouble due to demonetization at all. That’s why we cannot see any rich
people standing in queues.