DEMONETIZATION

Act of stripping a currency unit of its

status as legal tender
It is necessary whenever there is a
change of national currency
Demonetisation of Indian
Currency

Announced on 8th November 2016,

by The Prime Minister of India
Exchange of old notes
The RBI of India stipulated a window of fifty days
until December 30, 2016 to deposit the
demonetized banknotes in bank accounts
ATM Limits:
It was fixed to 2500 rupees
Raised to 4500 from January 1, 2017
Current limit is 10,000
Weekly withdrawal stands at 24,000
Reactions of general public
Strikes
As the demonetization was opposed in both houses
of the parliament, it triggered organized nationwide
strikes across India
The opposition parties like Indian National
Congress, BSP, DMK, JD(U), AIADMK,
Nationalist Congress Party left Rashtriya Janta Dal
and the Samajwadi Party decided to observe
Akrosh Diwas as a protest on November 28, 2016
Support
Arundhathi Bhattacharya( chairperson of State Bank
of India) and
Chanda Kochhar( MD & CEO of ICICI Bank)
appreciated the move in the sense that it would curb
black money
Infosys founder N. R. Narayna Murthy praised the
move
Finance Minister Arun Jaitley said that
demonetization would clean the complete economic
system, increase the size of economy and revenue
base
Criticism
Noble laureate Indian Economist Amartya Sen,
severely criticised the demonetization move
calling it a despotic action
Former Senior Vice-President and Chief
Economist of the world Bank, Kaushik Basu,
called it a major mistake and said that the
damage is likely to be much greater than any
possible benefits
Facts figures and reasons
Ithas been reported that 97% of the
demonetized notes are back in banks and banks
received Rs 14.97 trillion as of December 30
out of the 15.4 trillion rupees that were
demonetized
Terrorism- Our enemies use the fake currency
to sponsor terror, this was proven many a times
Corruption and Black money- India ranks 76 in
Global Corruption Perception
Positive Impacts
Eradicate black money and corruption to some
extent by replacing the cash transactions in our
daily activities
Demonetization has badly hit Maoist and
Naxalites
Real estate industry is totally corrupted and
now by this decision the real estate sector will
bring in more transparency by this we will have
more credibility
Cont..
A huge fall in HUMAN Trafficking
Hawala transactions- method of
transferring money without any actual
money movement
Negative Impacts
Scarcity of cash
Several people were reported to have died from
standing in queues for hours to exchange their old
banknotes
BSE SENSEX crashed nearly 1,689 points and
NIFTY 50 plunged by over 541 points
Agriculture- Insufficient money to purchase seeds,
fertilizers and pesticides
Dumping of agricultural produce
Business-E-commerce 30% decline in COD, Swipe
machines has increased(POS)
THANK YOU