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LATEST NEWS UPDATES | Five years since demonetisation: What has changed? -Roshan Kishore

Five years since demonetisation: What has changed? -Roshan Kishore

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published Published on Nov 8, 2021   modified Modified on Nov 8, 2021

-Hindustan Times

While demonetisation was subsequently described as a policy boost to promoting digital payments, the original policy had very different stated targets.

November 8, 2021 marks five years of demonetisation in India. On this day in 2016, in a televised address at 8 pm, Prime Minister Narendra Modi declared that currency notes of 500 and 1000 -- these two denominations were 86% of the currency in circulation at the time in terms of value -- would cease to be legal tender. What has changed in the Indian economy in these five years? How many of these changes are linked to demonetisation?

The surgical strike on illegal cash that wasn’t

While demonetisation was subsequently described as a policy boost to promoting digital payments, the original policy had very different stated targets. The biggest promise of demonetisation was that it would purge unaccounted cash in the system, with those hoarding forced to deposit it in the banks.

The Prime Minister’s speech announcing the policy said: “Which honest citizen would not be pained by reports of crores worth of currency notes stashed under the beds of government officers? Or by reports of cash found in gunny bags”. The implicit idea was that those who had unaccounted cash with them would be forced to either declare it to the tax authorities or just get rid of it. Many described demonetisation as a sort of surgical strike against corruption.

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* Vineet Sachdev contributed to this story


Hindustan Times, 8 November, 2021, https://www.hindustantimes.com/india-news/five-years-since-demonetisation-what-has-changed-101636310390379.html


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