The objective of demonetization  as claimed by

Government of India was to curtail the black money

and to stop the use of counterfeit cash to fund illegal

activity and terrorism.

Demonetization is the act of stripping a currency

unit of its status as legal tender.

India is no new to demonetization. Demonetization

has been implemented twice –1946 and 1978 in the past.

On 8 November 2016,The Government of India

announced the demonetization of all Rs.500 and

Rs.1,000 bank notes of Mahatma Gandhi series.

It also announced the issuance of new Rs.500 and

Rs.2,000 bank notes in exchange for the demonetized


All the banned bank notes(99.3%) were returned

to the central bank.

The income tax department seized Rs.474.37 crore

in  new and old currency from Nov.9, 2016 to January 4,

2017 (the demonetization period)


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