Table of Contents
- 1 What is Demonetisation When did the Indian government decide to Demonetise the 500 and 1000 rupee notes?
- 2 How does Demonetisation affect Indian economy?
- 3 What was the impact of demonetization exercise carried out in India on reserve money and money supply?
- 4 Is demonetisation a success or failure in India?
What is Demonetisation When did the Indian government decide to Demonetise the 500 and 1000 rupee notes?
On 8 November 2016, the Government of India announced the demonetisation of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. People seeking to exchange their banknotes had to stand in lengthy queues, and several deaths were linked to the rush to exchange cash. …
How does Demonetisation affect Indian economy?
Demonetisation lowered the growth rate of economic activity by at least 2 percentage points in the quarter of demonetization, said a working paper entitled ‘Cash and the Economy: Evidence from India’s Demonetisation. ‘
What is meant by Demonetisation what is its impact on the money supply of the country?
Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change in national currency. The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins.
What are the disadvantages of demonetisation?
The biggest disadvantage of demonetisation has been the chaos and frenzy it created among common people initially. Everyone was rushing to get rid of demonetised notes while inadequate supply of new notes affected the day to day budgets of citizens.
What was the impact of demonetization exercise carried out in India on reserve money and money supply?
The demonetization increases the deposits in current account and savings bank account. As government announced the demonetization, the money held by the household sector for the emergency purposes will be deposited with the banks, which will increase the deposits in the banks.
Is demonetisation a success or failure in India?
The data on Income tax returns filed also confirms the success of the demonetisation of the scheme. It surged 14.5 per cent in FY 2016 and then jumped 20.5 per cent in FY 2017, the year of demonetisation. In the subsequent year FY 2018, income tax returns filed surged further 23.1 per cent to 68.7 million.