What is Demonetisation When did the Indian government decide to Demonetise the 500 and 1000 rupee notes?
On 8 November 2016, the Government of India announced the demonetisation of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. People seeking to exchange their banknotes had to stand in lengthy queues, and several deaths were linked to the rush to exchange cash. …
Do you agree with the view that Demonetisation of 500 and 1000 rupee notes would help the government in lowering its fiscal deficit?
(c) It is true that demonetisation would help the government to lower its fiscal deficit. Because of demonetisation, shadow economy (black money economy) will shrink. Unaccounted output would now be accounted as a part of GDP.
Who announced about the denomination of 500 and 1000 notes a our Prime Minister b our president C Reserve Bank Governor?
₹500 and ₹1000 banknotes of Mahatma Gandhi series issued up to November 08, 2016 have ceased to be Legal Tender with effect from the midnight of November 8, 2016….Indian Currency.
| Denomination | Month and year of introduction |
|---|---|
| ₹1000 | November 2000 |
Was demonetization a success or failure?
The data on Income tax returns filed also confirms the success of the demonetisation of the scheme. According to I-T Department data, number of income tax returns filed grew 6.5 per cent in FY 2015 to 40.4 million. It surged 14.5 per cent in FY 2016 and then jumped 20.5 per cent in FY 2017, the year of demonetisation.
Why demonetization was an important decision for the government?
Key Takeaways Demonetization has been used as a tool to stabilize the currency and fight inflation, facilitate trade and access to markets, and push informal economic activity into more transparency and away from black and gray markets.
What is demonetization policy?
Demonetisation means an act of stripping the legal tender status of currency units. It happens whenever there is a change of any national currency. It involves the withdrawal of the current form or forms of money from being circulated usually replaced with new notes or coins.
What are the main impact of demonetisation?
Owing to a substantial withdrawal of currency in circulation, demonetisation led to a check on food inflation in the economy. Liquidity crunch led to a substantial fall in stock piling of foodgrains. Accordingly, there was a sharp fall in food inflation by about 240 basic points between November 2016- January 2017.
What percentage of the money in circulation become invalid after Demonetisation?
Prime Minister Narendra Modi had on November 8, 2016, announced demonetisation in a televised address, rendering 86 per cent of the currency in circulation invalid.
What are the advantages of Demonetisation?
A Comparison Table for Advantages and Disadvantages of Demonetisation
| Advantages | Disadvantages |
|---|---|
| Demonetisation can result in a decrease in tax evasion by individuals and ensure the implementation of practical public measures. | Every ATM in the country needs to be remodified to allow the exchange of currency. |
When was the 500 rupee note demonetised in India?
On 8 November 2016, the Government of India announced the demonetisation of all ₹ 500 and ₹1,000 banknotes of the Mahatma Gandhi Series. It also announced the issuance of new ₹500 and ₹2,000 banknotes in exchange for the demonetised banknotes.
When was the plan to demonetise the ₹500 note initiated?
The plan to demonetise the ₹500 and ₹1,000 banknotes was initiated between six and ten months before it was a report by the State Bank of India (SBI) analysed possible strategies and effects of demonetisation. In May 2016, the Reserve Bank of India had started preparing for new banknotes and confirmed the design of ₹2,000 banknotes in August 2016.
When was the first time demonetisation implemented in India?
On November 8, 2016, at 8:15 PM, the Prime Minister of India, Shri Narendra Modi announced the Cabinet decision to ban 500 and 1000 denomination currency notes. However, this was not the first time, and earlier demonetisation was effected in India in 1946 and 1978.
What is the time limit to deposit demonetised banknotes in India?
The Reserve Bank of India stipulated that the demonetised banknotes could be deposited with banks over a period of fifty days until 30 December 2016. The banknotes could also be exchanged for legal tender over the counter at all banks. The limit for such exchange was ₹4,000 per person from 8 to 13 November,…