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CURRENT ISSUE
What is demonetization?
All about demonetization
In a major step to check undeclared black money, the Government of India on the 8 November 2016 announced the ban of `500 and `1000 banknotes with effect from the same day’ s midnight, making the notes invalid, in its fight against the black money. Apart from combating black money, the stated purpose is also to check fake currency( helped to finance terrorism) and corruption. This has come as a surprise to everybody, the citizens, the nation and even within most of the government too. This move also known as currency demonetization. Now let us understand what is black money? what is demonetization? and the history currency demonetization in India. What is black money?
Income earned from illegal activities or the income that is not reported to the government for tax purposes.
What is demonetization?
In simple terms demonetization is defined as withdrawal of a particular form of currency from circulation.
What is demonetization for us?
Demonetization for us means that Reserve Bank of India has withdrawn the old ` 500 and ` 1000 notes as an official mode of payment.
What was the reason? The reasoning given by our Prime Minister was:
• To tackle black money in the economy.
• To lower the cash circulation in the country this is directly related to corruption in our country.
• To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India.
WINSPIRE: Empowering youth | December, 2016