Demonetisation is withdrawal of a particular form of currency from circulation which means it is no longer legal tender. On November 8, 2016, Prime Minister Narendra Modi announced the biggest-ever demonetisation exercise in India. Notes of Rs 500 and Rs 1,000 denomination were scrapped. The move was undertaken to crack down on black money and curb terror funding. Cash shortages ensued, significantly affecting the country’s economy. The RBI’s annual report released months after the exercise said almost 99% (Rs 15.28 lakh crore) of the banned currency notes had been deposited in banks between Nov. 8, 2016 and June 30, 2017. With almost all of the money accounted for, there are doubts whether the exercise was effective.
Picture Credit : Google