Demonetisation and its Impact on Indian Economy
Demonetization is a radical monetary step in which a currency unit is declared as an invalid legal tender. This is usually done whenever there is a change in the national currency of a nation. Such a step is especially taken to curb the menace of counterfeiting, black money and money laundering. A recent example is demonetisation of 500 and 1000 denomination currency units in India. The first instance of demonetisation by the government was implemented in 1946 when the RBI demonetised Rs 1,000 and Rs 10,000 notes. Later, higher denomination bank notes (Rs 1000, Rs 5000 and Rs 10000) were re-introduced in 1954. However, Morarji Desai government demonetised these notes in 1978. According to data provided by RBI Rs 10,000 note was printed in 1938 and 1954 and was subsequently demonetised in 1946 and 1978 respectively. This paper discusses the demonetization over black money holders and its impact on Indian economy.
Keywords: Black Money, Impacts, Indian Economy.
Volume: 4 | Issue: 2
Issue Date: August , 2018