Who has power to Demonetisation?
It is clear that section 26(2) of the RBI Act empowers the government to demonetise, that is, to declare any series of notes as illegal tender.
Who controls the flow of currency in India?
The Reserve Bank of India (RBI) prints and manages currency in India, whereas the Indian government regulates what denominations to circulate.
Who introduced Demonetisation in India?
Introduction. On November 8, 2016, India’s prime minister, Narendra Modi, made a surprise evening television appearance to announce that, starting at midnight, the nation’s 500-rupee and 1,000-rupee (i.e., ₹500 and ₹1,000) currency notes would no longer be legal tender.
Why is India demonetized?
In a televised address, Prime Minister Narendra Modi had announced the demonetisation initiative at 8 pm on November 8, 2016 to fulfil four objectives of checking terror-funding by Pakistan, printing of counterfeit currency, black money and corruption.
When was the second demonetization in India?
That day was declared a bank holiday. The second ordinance was the High Denomination Bank Notes (Demonetisation) Ordinance. It demonetised banknotes of the denominations of Rs 500 and above with effect from January 13, 1946.
Who did Demonetisation in 1978?
Morarji Desai’s
41 years ago, Morarji Desai’s govt also demonetised high value banknotes. On 16 January 1978, the Janata Party-led government demonetised Rs 1,000, Rs 5,000 and Rs 10,000 banknotes to weed out black money.
Who regulate the money supply?
The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934.
Who Demonetised Indian currency in 1946?
Sir Archibald Wavell
Kuwait: Exactly 70 years before the Indian demonetization act of 2016, on January 12, 1946, the Viceroy and Governor General of India, Sir Archibald Wavell, promulgated the High Denomination Bank Notes (Demonetisation) Ordinance, 1946.
How many times India has Demonetised its currency?
The Indian government had demonetised banknotes on two prior occasions—once in 1946 and once in 1978—and in both cases, the goal was to combat tax evasion via “black money” held outside the formal economic system.
Is Demonetisation good or bad?
After more than 2 years of Demonetization, Indian Economic Survey claims that the economy has done away with all the negative impacts of Demonetization. However, economic experts are of the view that the economy is still crying for a faster growth and little objective has been achieved by the demonetization move.
Is Demonetisation successful in India?
– Demonetisation has made India a lesser cash-based economy. At the end of the financial year 2015-16, Rs. 16.41 lakh crore worth of notes were in circulation, registering a YoY growth of 14.51 per cent over 2014-15.