Demonetisation 2016

• On 8th Sep 2018 BJP led government announced the demonetisation of all ₹500

and ₹1000 banknotes
• The government claimed that the action would reduce the counterfeit cash which are
use to fund illegal activity and terrorism
• This move received support from several bankers as well as from some international
bodies.
• Approximately 99.3% of the demonetised currency deposited with the banking system.
• This move reduced the country's industrial production and its GDP growth rate
temporarily.