 Queues outside a bank to exchange demonetised banknotes in Birganj, Kolkata on 10 November 2016 | |
| Date | 8 November 2016 |
|---|---|
| Time | 20:15 IST (14:45 UTC) |
| Location | India |
| Casualties | |
| Independent stats: 100 dead as of 8 December 2016[update][1] | |
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On 8 November 2016, the Government of India announced the demonetisation of all ₹500 and ₹1000 banknotes of the Mahatma Gandhi Series. It also announced the issuance of new ₹500 and ₹2000 banknotes in exchange for the demonetised banknotes.[2] The government claimed that the action would curtail the shadow economy and reduce the use of illicit and counterfeit cash to fund illegal activity and terrorism.[3][4]
The announcement of demonetisation was followed by prolonged cash shortages in the weeks that followed, which created significant disruption throughout the economy.[5][6][7][8][9][10] People seeking to exchange their banknotes had to stand in lengthy queues, and several deaths were linked to the rush to exchange cash.[11][12]
According to a 2018 report from the Reserve Bank of India, approximately 99.3% of the demonetised banknotes, or ₹15.30 lakh crore (15.3 trillion) of the ₹15.41 lakh crore that had been demonetised, were deposited with the banking system. The banknotes that were not deposited were only worth ₹10,720 crore (107.2 billion),[13] leading analysts to state that the effort had failed to remove black money from the economy.[14][15] The BSE SENSEX and NIFTY 50 stock indices fell over 6 percent on the day after the announcement.[16] The move reduced the country's industrial production and its GDP growth rate.[17]
Initially, the move received support from several bankers as well as from some international commentators. The move was also criticised as poorly planned and unfair, and was met with protests, litigation, and strikes against the government in several places across India. Debates also took place concerning the move in both houses of parliament.[18][19][20][21]
- ^ "India's Demonetisation Kills 100 People Apparently - This Is Not An Important Number".
- ^ "Withdrawal of Legal Tender Status for ₹ 500 and ₹ 1000 Notes: RBI Notice (Revised)". Reserve Bank of India. 8 November 2016. Retrieved 8 November 2016.
- ^ "Here is what PM Modi said about the new Rs 500, Rs 2000 notes and black money". India Today. 8 November 2016. Retrieved 9 November 2016.
- ^ "Notes out of circulation". The Times of India. 8 November 2016.
- ^ Saikia, Bijoy Sankar (18 November 2016). "Demonetisation may drag India behind China in GDP growth, rob fastest-growing economy tag". The Economic Times. Retrieved 5 January 2017.
- ^ "The dire consequences of India's demonetisation initiative". The Economist. 3 December 2016. Retrieved 5 January 2017.
- ^ "Demonetization Announcement Anniversary 2017 | Onmanorama". OnManorama. Retrieved 7 November 2017.
- ^ Cite error: The named reference
dryatmwas invoked but never defined (see the help page). - ^ Cite error: The named reference
IEchaoswas invoked but never defined (see the help page). - ^ "100 days of demonetisation: Stories of hardship". Al Jazeera.
- ^ Cite error: The named reference
Aljazeera-1was invoked but never defined (see the help page). - ^ "Demonetisation Death Toll Rises To 25 And It's Only Been 6 Days". huffingtonpost. Retrieved 15 November 2016.
- ^ Cite error: The named reference
itoday1was invoked but never defined (see the help page). - ^ Cite error: The named reference
FTdemonetisationFailwas invoked but never defined (see the help page). - ^ Cite error: The named reference
BBCdemonetisationFailwas invoked but never defined (see the help page). - ^ Cite error: The named reference
stockcrash9novwas invoked but never defined (see the help page). - ^ "Thanks to Demonetization and GST, India's GDP growth hit a 4-year low at 6.5 per cent". India Today. Retrieved 2 October 2018.
- ^ "Demonetisation debate in Parliament: Disaster, says Chidambaram; high cash economy corrupt, counters Jaitley : India, News - India Today". Indiatoday.intoday.in. 9 February 2017. Retrieved 26 June 2017.
- ^ "Demonetisation: Opposition calls for countrywide protest on November 28". The Indian Express. 23 November 2016. Retrieved 23 November 2016.
- ^ "Demonetisation: Opposition parties join hands, to hold 'protest day' on November 28". The Indian Express. 23 November 2016. Retrieved 24 November 2016.
- ^ "'Demonetisation protest sure to succeed with people's support'". The Economic Times. Retrieved 24 November 2016.