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The Indian government approved the elimination including all Mahatma Gandhi Series 500 & 1,000 currencies on Nov 8, 2016. In compensation for said demonetised banknotes, this even approved the printing of fresh 500 & 2,000 currency notes. Prime Minister Narendra Modi stated that perhaps the action will indeed decrease any use of illicit as well as counterfeit money to finance unlawful activity & terrorism by reducing the underground economy, increasing contactless payments, and reducing any use of illegal substances.
Following the declaration of demonetisation, there was extended cash scarcity inside the following weeks, causing severe economic disruption. People who wanted to convert the currencies would have to wait in long lines, and numerous deaths have been attributed to the money rush.
DEMONETIZATION INDIAN HISTORY
Demonetisation was first implemented in India in 1978, when the Janata Party alliance decided to abolish old 10,000, 1000 & 500 INR banknotes in order to battle black wealth. Strangely, the measure was opposed by IG Patel, official RBI governor, who believed it was directed at unethical previous government figures. Anyone with high-denomination banknotes was given a whole week to exchange them. Higher monetary values accounted for such a small fraction of total monetary base that they would have no obvious impact mostly on supply of money or even the price of necessities.
NEW CURRENCY NOTES (MAHATMA GANDHI)
The Reserve Bank of India (RBI) issues the Gandhi New Series of bills as legal currency for the Indian rupee, created to supersede the Gandhi Series of notes. It was established on November 8, 2016, so it came after the demonetisation of said original Gandhi Series 500 & 1000 currencies. The picture of Mahatma Gandhi is displayed prominently on the obverse of said Mahatma Gandhi New Series banknotes, as it is on the previous series of banknotes. The Swachh Bharat Abhiyan logo too is engraved also on the reverse of these series’ notes.
CIRCULATION OF THE BANK NOTES AFTER THE DEMONETIZATION
According to the agency’s statement, this means approximately 99.31 percent of said cash has been restored to use since the old Rs500 & Rs1,000 banknotes were banned, with only 0.69 percent of Indian currency (Rs10,720 crores) remaining out of use.
After verification & reconciling, the total amount of such money in circulation of a former Rs.500 & Rs.1000 currency banknotes that have been demonetised by Nov 8, 2016, were Rs15,41,793 crores. Inside a letter response to Dr Swamy, MoS (minister of state) of finances Pankaj Chaudhary indicated that the entire amount of a Selected Currency Notes (SBNs) of Rs500 & Rs1000 denominations were Rs8,56,445 crores & Rs6,85,348 billion in total, correspondingly.
SECURITY FEATURES OF BANK NOTES
These Mahatma Gandhi New Series notes include the following security mechanisms:
1. The numerical value has been at its lower left portion of a note on front & toward the lower right half of a note mostly on reverse, forming a see-through registering mechanism. All 10, 20, 50, 100, 200, 500, & 2000 banknotes are printed on this paper.
2. Novel number is a series of 6 serial numbers which grow in length as they progress from left towards right. Such serial numbers may be found next to the banknotes just on top left & bottom right sides.
3. Whenever the note is slanted, the value may be seen inside the strip on the left side on Mahatma Gandhi’s face, which is situated just on the bottom left side of a note’s face. The 10, 20, 50, 100, 200, 500, & 2000 notes are printed on this paper.
CONCLUSION
As per a 2018 study from the Reserve Bank of India, around 99.3 percent of said demonetised bills were lodged with the banking system, resulting in experts claiming that attempt failed to eliminate illicit money out of the system. A day after the news, both BSE SENSEX & NIFTY 50 stock indexes plunged more than 6%. The nation’s industrial output & GDP growth rate were both lowered as a result of the shift. A total of 1.5 million new jobs were eliminated, according to estimates. In addition, there was a huge surge in electronic & paperless activities across the nation as just a result of the change.
