The Influence of Demonetization on India's History and Future

Abstract

Demonetization refers to the process of revoking the legal tender status of a currency unit. Prime Minister Narendra Damodar Das Modi implemented the concept of demonetization in order to curb the circulation of illicit funds. The obsolete currency unit must be phased out in favor of the new ones. It is a highly efficient method for reducing the circulation of illicit funds. In November 2016, the government undertook a significant push to combat illicit funds within the country. Fiji, Singapore, and the Philippines followed India's lead in implementing demonetization. The Reserve Bank of India has discontinued the circulation of the previous denominations of Rs 500 and Rs 1000 notes. Individuals possessing currency notes of a greater denomination were granted an extended timeframe till January 2017.The Prime Minister of India made a significant decision to target bureaucrats, politicians, businesspeople, terrorists, smugglers, drug dealers, and black marketeers who were involved in illegal activities that would have a detrimental impact on the environment. This decision rendered these banknotes invalid as legal currency from midnight on November 8th, 2016.