On november 8, 2016 the government of India announced the Demonetization of all Rs.500 and Rs.1000 banknotes of the Mahatma Gandhi series. It also announced that new Rs.500 and Rs.2000 banknotes in exchange for the demonetised banknotes.
Demonetization is the act of removing currency as legal tender.New forms of notes and coins are replaced by the old ones.The most crucial thing is that old notes and coins are banned.
- Corruption is reduced and dealing of black money stops.
- Liability of the government is reduced by the introduction of demonetization.
- One of the huge impact of demonetization is that in certain cases, it leads to tax avoidance
- One of the major challenges faced by the introduction of demonetization is the connectivity of the internet due to digital transactions.
- And there will be cash storage.
- Few people don’t know about when this technique have started at the time of demonetization.