An essay on demonetisation in india which happened recently.
Please use the following points to write your essay.
- When the government demonetises a currency, it loses it legal status as money and becomes an ordinary piece of paper. In other words, Rs 500 and Rs 1,000 are not legal currencies anymore.
- The government demonetised Rs 500 and Rs 1,000 notes on 08 November 2016 to reduce the amount of cash available in the system which in turn, is expected to restrain the control of black money.
- Notes of Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, Rs 2 and Re 1 and all coins are continued to be valid.
- The government has introduced new notes of Rs 2,000 and Rs 500 and these will soon be in circulation.
- The government has instructed banks to link all savings accounts with mobile and Aadhaar numbers by March 31, 2017, and enable mobile banking for such customers.
- The famous temples and shrines in India have received junked notes post demonetisation.
- Possession of the banned notes is now a criminal offence.
- The currency ban move is actually making people from the rural areas and those who engage in daily transactions go cashless by adapting to online transaction modes.