Write a article on demonitisation

Demonetization is the act of stripping a currency unit of its status as legal tender. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.

The opposite of demonetization is remonetization where a form of payment is restored as legal tender.

BREAKING DOWN 'Demonetization'

There are multiple reasons why nations demonetize their local units of currency. Some reasons include to combat inflation, to combat corruption, and to discourage a cash system. The process of demonetization involves either introducing new notes or coins of the same currency or completely replacing the old currency with new currency.

In 2016, the Indian government decided to demonetize the 500- and 1000- rupee notes, the two biggest denomination notes. These notes?
accounted for 86% of the country?s cash supply. The government?s goal was to eradicate counterfeit currency, fight tax evasion, eliminate black money gotten from money laundering and terrorist financing activities, and promote a cashless economy. By making the larger denomination notes worthless, individuals and entities with huge sums of black money gotten from parallel cash systems were forced to convert the money at a bank which is by law required to acquire tax information from the entity. If the entity could not provide proof of making any tax payments on the cash, a tax penalty of 200% of the tax owed was imposed.
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When PM Modi announced that Rs with the denomination of 500 and 1000 cease to be the legal tender from the the 9th of nov,the whole country was stunned.This decesion caused the sentation in the whole country.The media was fooled with messages and information.People started counting the trash they had accumalated for yrars legally or illegally.
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Please see answer below
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