Demonetization is the act of stripping a currency unit of its status as legal tender and retiring old currency in favor of new notes. India has demonetized its currency three times previously, in 1946, 1978, and most recently in 2016 when PM Modi removed the Rs. 500 and Rs. 1000 notes from circulation. The goals of demonetization are to curb black money, fight corruption and terrorism, remove counterfeit currency, and promote digital and cashless transactions. While demonetization achieved some goals like increased tax collection and digital transactions, it also had negative impacts such as job losses and a temporary slowdown in GDP growth.

1. Demonetization in India

2. INTRODUCTION
WHAT? WHY? WHEN?

3. What Is
Demonetization ?
• Demonetization is the act of
stripping a currency unit of its status
as legal tender.
• In this process old currency unit is
retired and new currency unit comes
into circulation.
There are multiple reason why
nations demonetize their currency unit.

4. Why
Demonetization?
• To combat corruption (Black Money)
• To fight against terrorism
• To remove fake currency
• To promote Plastic money and digital
transaction.

5. When
Demonetization
Happened?
India’s History with demonetization:
First currency ban in India: In 1946 , the currency note
of 10,000 and 1000 were removed from circulation.The
ban really did not have much impact, as the currency of
such high denomination was not accessible to common
people. However both the notes reintroduced in 1954
with an additional unit of 5000 as currency.
The second:
In 1978, the prime minister of India Morarji Desai
announce the currency ban taking 1000, 5000 and
10,000 out of circulation.The sole aim of the ban was to
curb the black money generation in the country.
November 2016 demonetization move : The Indian
government decided, and announced on November 8,
2016, the two notes of biggest denomination, i.e. rupees
500 and 1000. that comprises 86 % share in the total
cash supply chain of the country.

6. COUNTRIES WHO HAVE DONE BEFORE
Ghana
Zimbabwe
Australia
New Zealand
USA
European Union
Singapore
Norway
UK
India

7. Objectives
To curb the menace of black money/shadow economy.
To Reduce cash circulation and tackle corruption.
To promote Cashless transaction , to increase transparency in economic
transaction.
To prevent terror funding, which thrives on a cash economy

8. Positive impact of Demonetization
Increase inTax Collection: There was a considerable increase in the number of
ITRs filed after demonetization, according to government reports.
Tackling black money: The government was able to identify more than 37,000
shell companies that were engaged in hawala transactions and money laundering.
Increase in Digital Transactions: Digital transactions increased by 50-55% since
demonetization.
Reduction in Human Trafficking: According to Nobel Laureate Kailash Satyarthi
and several others who fight the perils of human trafficking in India, the currency-ban
led to a severe decline in activities like human trafficking and child trafficking.

10. Banks resumed helping small businesses:

11. Negative Impact of Demonetization in India
According to a report issued by the Reserve Bank of India in 2018, approximately
99.3% of the demonetized notes having a valuation of 15.30 lakh crore were
deposited in the bank. The banknotes that were not deposited valued only 10,720
crores. It led the analysts to conclude that this effort to curb the menace of black
money from the market was not completely successful in meeting its objectives.
Moreover, this hastily executed decision lower industrial production but it also
affected the GDP growth rate.
A report by Azim Premji University also revealed that 50 lakh people lost their jobs
since demonetization.

12. Thanks