The Union cabinet was informed about the plan on 8 November 2016 in a meeting in the evening called by the Indian Prime Minister Narendra Modi. Soon after the meeting, Modi announced the demonetisation in an unscheduled live national televised address at 20:15 IST.
Who took the decision of demonetisation?
On November 8, 2016, at 8 pm, Prime Minister Narendra Modi gave a surprise address to the nation, saying he wants to “make a special request” to Indian citizens. As of midnight on that day, Modi said, all Rs 500 and Rs 1,000 notes would no longer be valid currency.
Who announced Indian demonetisation?
In a televised address, Prime Minister Narendra Modi had announced the demonetisation initiative at 8 pm on November 8, 2016 to fulfil four objectives of checking terror-funding by Pakistan, printing of counterfeit currency, black money and corruption.
Who is the father of demonetisation?
Anil Bokil. There has been a 20% increase in detection of counterfeit notes, But it has come at a huge price, with a higher currency-printing bill and other costs.
Who has power to demonetisation?
It is clear that section 26(2) of the RBI Act empowers the government to demonetise, that is, to declare any series of notes as illegal tender.
Did demonetisation help India?
The result has been an economic slowdown even before the Covid-19 pandemic hit in 2020. Demonetisation was an ill-advised step that did not achieve any of its goals, even after the goalposts were shifted. But it damaged the economy no end, especially the unorganised sector.
Who was the prime minister of India during the demonetisation of 1978?
Exactly 41 years ago, on 16 January 1978, Prime Minister Morarji Desai’s government too demonetised high denomination banknotes. As part of its move, the Janata Party-led government announced that Rs 1,000, Rs 5,000 and Rs 10,000 banknotes would not be treated as legal tender after banking hours on that day.
When was demonetisation declared India?
In a sweeping move, PM Modi has taken a hard stance on black money circulation in India by demonetisation. The Prime Minister has announced the following moves as part of the demonetisation of old currency notes: Existing Rs 500 and Rs 1,000 currency notes will not be valid from 8th November midnight.
Who is current RBI governor?
The government late Thursday reappointed Shaktikanta Das governor of the Reserve Bank of India (RBI) for three years, signalling its approval of the policies pursued by the central bank during the once-in-a-century pandemic crisis.
Why was demonetisation done?
It was done to reduce the presence of counterfeit cash to fund criminal activity. When the demonetization was announced, there were shortages of cash across the country, as people scrambled to exchange their existing banknotes.
How many times Demonetisation in India took place?
The Indian government had demonetised banknotes on two prior occasions—once in 1946 and once in 1978—and in both cases, the goal was to combat tax evasion via “black money” held outside the formal economic system.
When was RBI established?
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.