The process of Demonetization is done to retire the old currency of a nation and to bring out the new currency in the market. The complete banning of the old notes is done in Demonetization.
The Demonetization is done such as banning a 50 rupees note and to make a new 50 rupees note in the market. After banning such notes, there is no use of these notes; they become like a normal paper, and there is no availability for people to use these notes for anything.
In the recent time in 2016 Indian government Prime minister Narendra Modi has also used this method of the Demonetization of money in the country he then banned notes of rupees 500 and 1000 permanently, and there is no use of this notes.
Demonetization In India
In the year 2016, the government of India has used this method. The Indian Prime Minister Narendra Modi had decided to demonetize the notes of rupees 500 and 1000.
He took this decision at the night of 8 November and announced it on the next day that there will be no use of these notes, and these notes will be referred as a paper, and there will be no use of this notes longer.
After his banning these notes he assured that the people should exchange these notes with the bank and only rupees hundred rupees notes should be used for the bigger transactions rather than 500 or 1000 rupees notes.
It was the biggest decision that has been taken by the government almost about 80-85 percent of the country’s circulating cash. For exchange of the money from the bank, he gave almost two months gap for the people to get exchange there 500 and 1000 rupees notes.
He does this process for getting out the black money and corrupted money from the people who do not pay taxes and keep hiding their money. Because of this method, many people got pissed, but it has very much improvement in the development of the country.
Problems Caused By People Due To Demonetization In India
There are also many effects of these demonetization methods for the people as there are many shortages of change for the people.
To change their money people have to go to the bank and stand in a queue for many hours to exchange their money. There was also a limit to exchange money between 10,000 to 20,000 per week was a limit to exchange money per account.
Due to this effect of the Demonetization, many of the corrupt money and black money has come into existence by many people in huge amount.
After this banning of notes, the government started to make new notes of rupees in 2000, and it was being introduced at the start of the month in the year 2017.
It has caused many problems for the people, but this action that the Indian government has taken will lead to a great development of our country.
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