2016 Indian banknote demonetisation

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and 108 percent, respectively, while India's economy had only grown by 30 percent during this period; and (2) cash typically facilitated "black money." The board was further told that the measure was also intended to encourage greater financial inclusion and to incentivize greater digitization of the economy. The board approved the proposal, but not before making a few trenchant comments. It noted that the measure may not have the desired effect on black money because most people do not hold undeclared wealth in cash. It further worried about the negative effects on growth that were likely to occur in the short run. Possibly the most damning observation was that the primary fact on which the government had based its proposal—that the supply of 500- and 1,000-rupee bills had far outstripped the growth rate of the economy—was simply wrong. The board pointed out the embarrassing fact that the government had compared GDP growth in real terms with the growth of currency supply in nominal terms. In fact, nominal GDP growth had summed to over 80 percent between 2011 and 2016 and hence was in line with the growth of the currency bills to be demonetized."

47: 3090:(CMIE), the number of employed people was 401 million in January–April 2016, 403 million during May–August 2016, and 406.5 million in September–December 2016. After demonetisation in November 2016, the number fell to 405 million in January–April 2017. So there was fall of 1.5 million in number of people employed. CMIE also reported that the number of persons employed was 406.7 million in 2016–17 which fell by 0.1% to 406.2 million in 2017–18. So the employment had stagnated which resulted in employment rate decline. The employment rate fell from 42.59% in 2016–17 to 41.45% in 2016–17. The unemployment rate also declined from 7.51% in 2016–17 to 4.66% in 2017–18 because of the shrinking employed force. The number of the employed force fell from 439.7 million in 2016–17 to 426.1 million in 2017–18. CMIE attributed the impact to demonetisation as well as implementation of 105: 2580: 1726: 1715: 1514: 1878: 3889: 2022: 2438:

but the majority of them were from salaried and non-business class. The income tax collections increased in the financial year of 2017 due to Income Disclosure Scheme 2016. If adjusted for it, the increase in tax collection was modest. The tax-to-GDP ratio has increased due to expanding tax base. An analysis of the economic data shows that there has been no substantial increase in the number of new tax payers or direct tax collection due to demonetisation. Indirect tax/GDP ratio also remained on the trend path and had no visible impact.

3719: 10235: 3861: 3053: 3014: 2768: 2730: 2475: 2409: 1521: 3185:(NRIs) to deposit demonetised banknotes after 31 December 2016. As a result, many people were left stranded with demonetised banknotes. People petitioned the courts to allow a deposit of the demonetised banknotes. In November 2017, the Supreme Court dismissed 14 petitions related to demonetisation, and asked petitioners to file pleas with a constitutional bench which would deal with cases related to demonetisation. 3875: 2567: 1527: 2454:

demonetisation. The value of credit cards increased but no sharp growth was seen. The mobile wallet transactions picked up immediately after demonetisation, followed by a dip in mid-2017 due to easing cash shortages. There was again sharp rise thereafter. By April 2018, the volume of the digital payments had doubled. After return of the cash, the growth in digital payment had been modest.

2662:(PMI) fell to 46.7 in November 2016 from 54.5 in October 2016, recording its sharpest reduction in three years. A reading above 50 indicates growth and a reading below shows contraction. This indicates a slowdown in both manufacturing and services industries. The PMI report also showed that the reduction in inflation in November 2016 was due to a shortage in money supply. 3760:, there was an increase in digital payments. The general rise in digital payments and cashless transactions has been attributed to the demonetisation. Although data released by RBI in Nov 2021 showed that cash circulation in India has actually increased significantly since demonetization and demonetization has not necessarily converted cash users to digital users. 2004:' with respect to the goals of the demonetisation exercise. The initial stated goal was to curb black money, corruption, and terrorism, but as it became apparent that almost all the cash was being exchanged, the goals were expanded to include making India a cashless economy, neutralisation of money held by Maoists, terrorists and human traffickers, among others. 5249:"With effect from the midnight of 2nd December, 2016, old Rs. 500 bank notes will not be accepted at petrol, diesel and gas outlets of Public Sector Oil and Gas Marketing Companies as well as for purchase of Air Tickets at Airports; However, supply of LPG continues to be in the exempted category for the purpose of payment through old Rs. 500 bank notes" 2077:(cash collection boxes in temples and gurudwaras) are exempted from inquiry by the tax department; this is sometimes to launder money. After the demonetisation, there was a spike in donations in the form of the demonetised banknotes in temples. People booked large numbers of railway tickets to dispose of unaccounted cash. This came to the notice of the 3650:, called the move "the politics of visible disruption". He noted that the people might attribute the implementation shortcomings to institutional weakness while the government could take credit for its attempt to curb the black money. He also noted that it may result in the public opinion in favour of the government which is led by the 3141:

to a detailed list compiled by Catch News. By the end of December 2016, political opposition leaders claimed that over 100 people had died due to demonetisation. In March 2017, the government stated that they received no official report on deaths connected to demonetisation. Later in December 2018, the then

3248:, initially, praised the demonetisation of larger currency notes as "a policy I have long supported, First step towards cashless and good start on reducing corruption.", but was befuddled with the introduction of even bigger Rs.2000 banknote later on. Economist and journalist T. N. Ninan wrote in the 3111:

Before demonetisation, the RBI had spent ₹34.21 billion to print banknotes in 2015–2016 (July to June). The cost of printing new banknotes rose to ₹79.65 billion in 2016–17 and ₹49.12 billion in 2017–18. This resulted in a decline in the dividend paid to the government from ₹658.76 billion in 2015–16

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showed that companies in cement, cotton and rubber sectors showed an increase in total trades while companies in automotive, clothing, foods, paper, real estate, retail, steel, sugar, tea and textiles sectors showed a decrease in total trades after demonetisation. Demonetisation had a negative impact

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called it "a case study in poor policy and even poorer execution". The frequent change in the narrative on objectives of the demonetisation to its visible impact on the poorest of the poor made other critiques calling the government's narrative as spins in view of the "pointless suffering on India's

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Several people were reported to have died from standing in queues for hours to exchange their demonetised banknotes. Deaths were also attributed to lack of medical help due to refusal of demonetised banknotes by hospitals. In one month after the demonetisation was announced, 82 people died according

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The All India Motor Transport Congress claimed that about 800,000 truck drivers and conductors were affected with the shortage of cash, with around 400,000 trucks stranded on major highways across India. Major toll plazas in Gujarat and on the Delhi-Mumbai highways also saw long queues as toll plaza

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During the demonetisation, police and tax officials across India seized ₹6.1 billion in unaccounted money, including ₹1.1 billion in new banknotes. Reports in the media noted that although the general public faced a severe cash shortage, some individuals were able to amass tens of millions of rupees

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Initially, the move received support from some central 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

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The announcement of demonetisation was followed by prolonged cash shortages in the weeks that followed, which created significant disruption throughout the economy. People seeking to exchange their banknotes had to stand in lengthy queues, and several deaths were linked to the rush to exchange cash.

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Before demonetisation (November 2016), there were banknotes worth ₹17.97 trillion in the market. The demonetised banknotes constituted 86.4% of it. The banknotes in circulation had reached to the level before demonetisation in March 2018. By March 2018, there were banknotes worth ₹18.03 trillion in

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The number of income tax returns filing increased from 43.3 million to 52.9 million between the financial year of 2016 and 2017, which was not a significant increase compared to the increase between 2015 and 2016. The tax compliance had increased with a number of income tax returns filing increased

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The government estimated that ₹5 trillion, or approximately 20%, of the demonetised banknotes would be permanently removed from circulation. However, according to a 2018 report from the RBI, 99.3% of the demonetised banknotes, or ₹15.3 trillion of the ₹15.41 trillion that had been demonetised, were

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The Board of the Reserve Bank of India met on Nov 8th, 2016, 5:30 PM to consider a letter from the Ministry of Finance regarding demonetization. "Two key reasons for the proposal cited in the government letter were: (1) between 2011 and 2016, the supply of 500- and 1,000-rupee bills had grown by 76

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The Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 was issued on 28 December 2016, ending the liability of the government for the demonetised banknotes. The ordinance also imposed fines on people found carrying out transactions with them after 8 November 2016, or holding more than

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from 18 to 25 November. The exchange of banknotes was stopped completely on 25 November, although the government had previously stated that the volume of exchange would be increased after that date. International airports also facilitated an exchange of banknotes for foreign tourists and out-bound

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constitute 80.6% of it. Thus, small domination banknotes increased by only 5.8%. The volume of banknotes in the market increased by 2.1%. The banknotes in circulation had further increased to ₹19.5 trillion in September 2018 and ₹21.41 trillion in March 2019, 19.14% higher than the level before

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refused to strike down the demonetisation decision of 2016 on the basis of proportionality, saying that the process followed by the government to take the action was not flawed, even if the move did not achieve its objectives. The dissenting judgement said that the procedure of notification of

2380:(new version) banknotes than the previous year. There has been no significant change in the number of counterfeit banknotes detected. In 2017–18, the number of detected counterfeit banknotes was close to the number before demonetisation. Additionally, after demonetisation, only 0.0035% of the 3400:

A Parliamentary panel report in April 2017 stated that rural households and "honest taxpayers" were the worst hit by demonetisation. It said that it was not just the poor that suffered, but the manufacturing sector was impacted too. According to the panel, demonetisation created significant

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The shortage of cash led to plunge in demand which in turn led to a crash in the prices of crops. Farmers were unable to recover even the costs of transportation from their fields to the market from the low prices offered. Some farmers dumped their produce in protest against the government.

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The push for digital payments was one of the stated intentions of demonetisation. There was an immediate and sharp jump in digital payments in November–December 2016 owing to shortages of cash. The debit card point of sales transactions was twice the size of value suggested by trends before

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ten of them after 30 December 2016. It provided for the exchange of the banknotes after 30 December for people who had been outside India between 9 November and 30 December. The Specified Bank Notes (Cessation of Liabilities) Act, 2017 was notified on 1 March 2017, replacing the ordinance.

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There were reports of people circumventing the restrictions imposed on exchange transactions by conducting multiple transactions at different bank branches, and by sending hired people, employees, and followers in groups to exchange large amounts of demonetised banknotes at banks. In

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growth rate for the financial year 2016–17 by 0.5 to 3% due to demonetisation. India's GDP in 2016 is estimated to be US$ 2.25 trillion, hence, each 1 per cent reduction in growth rate represents a shortfall of US$ 22.5 billion (₹1.54 trillion) for the Indian economy. According to

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have criticised and led major protests against the decision in their states and in parliament. Initially, the move to demonetise and try to hinder black money was appreciated, but the manner in which it was carried out by causing hardships to common people was criticised.

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The Reserve Bank of India stipulated that the demonetised banknotes could be deposited with banks over a period of fifty days until 30 December 2016. The banknotes could also be exchanged for legal tender over the counter at all banks. The limit for such exchange was

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The scarcity of cash due to demonetisation led to chaos, and people faced difficulties in depositing or exchanging the demonetised banknotes due to long queues outside banks and ATMs across India. The ATMs were short of cash for months after demonetisation.

3461:, stated that "the government was not even prepared to recalibrate the ATMs while announcing the move. People's suffering are unimaginable. Nobody is questioning the government's intention, but you are unprepared to execute the move". Later, the former 3256:

described the move as "sickening and immoral." Forbes wrote that "hat India has done is commit a massive theft of people's property without even the pretense of due process—a shocking move for a democratically elected government." Nobel laureate

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The GDP growth rate for Q1'17–18 dropped to 5.7%, compared to 7.9% a year prior, the lowest since March 2014. This drop was attributed to demonetisation as well as inventory drawdown by companies due to the forthcoming implementation of the

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called the move 'witless' and 'anti-people'. He criticised the assumption that black money was "a hoard of cash", saying that it would have little effect in eliminating "black activities" and would "caus much hardship to common people."

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The currency-to-GDP ratio was 12.1% in 2015–16. It declined to 8.8% in 2016–17 due to demonetisation but increased again to 10.9% in 2017–18. The currency-to-GDP ratio was only marginally lower compared to levels before demonetisation.

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to ₹306.59 billion in 2016–17 and ₹500 billion in 2017–18. It was estimated that this decrease in income for the government could cause the fiscal deficit for the financial year 2016–17 to increase from the targeted 3.2% to 3.4%. The

1988:. Other stated objectives included expanding the tax base and increasing the number of taxpayers; reducing the number of transactions carried out by cash; reducing the finances available to terrorists and radical groups such as the 2553:

radical groups decreased, which was attributed to lack of finance following demonetisation. The surrender rate had reached its highest. The activities returned within few months. There was a decrease in the terror activities in

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per person. Fuel pumps, government hospitals, railway and airline booking counters, state-government recognised dairies and ration stores, and crematoriums were allowed to accept the demonetised banknotes until 2 December 2016.

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The government had initially announced that any person who was unable to deposit the demonetised banknotes by 31 December 2016 would be given an opportunity to do so until a later date. However, the government allowed only

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referred all cases which have similarity to demonetisation to constitutional bench to review the legality of the demonetisation, implementation irregularities and violation of people's rights by limits on cash withdrawals.

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was apprised of the plan on 8 November 2016 in a meeting in the evening convened by Prime Minister Modi. Soon after the meeting, Modi announced the demonetisation in an unscheduled live national televised address at 20:15

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The Q4'16–17 rate was 6.1% as against a forecast of 7.1% by economists. The rate for the financial year 2016–17 was 7.1%, a reduction from the 8% in 2015–16. This drop was attributed to demonetisation by economists.

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banknotes was unknown. In its annual report of March 2016, the Reserve Bank of India (RBI) stated that total banknotes in circulation valued ₹16.42 trillion, of which nearly 86% (around ₹14.18 trillion) derived from

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said "this scheme will hurt small industries, the farming sector. The GDP can decline by about 3 percent due to this move". He called the demonetisation an "organised loot, legalised plunder of the common people".

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demonetisation by the government was unlawful, while agreeing with the majority decision that the government has the authority to take such a decision, regardless of the validity of the reasons for the decision.

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Demonetisation in India and Emerging Challenges: A Report Delivered to the Department for the Economy, Northern Ireland and the Government of India by Queen's University Belfast and O.P. Jindal Global University

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In an interview of prominent businessmen 'allegedly' claimed after the announcement of demonetisation that they had received prior tip-offs and rumours warning of the move and after seeing leaked photos of new

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The banks incurred the cost in collection, storage, and movement of banknotes across the country, as well as the cost of re-calibrating ATMs for the new banknotes (as they differed in size from the old ones).

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Demonetisation caused a loss of jobs and a decline in wages, particularly in the unorganised and informal sector and as well as in small enterprises. Migrant workers were adversely affected by demonetisation.

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per week from 14 November 2016. Limits on cash withdrawals from Current accounts/ Cash credit accounts/ Overdraft accounts were withdrawn later. RBI increased the withdrawal limit from Savings Bank account to

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deposited with the banking system. The banknotes that were not deposited were worth ₹107.2 billion. Commentators concluded that the government had failed in its aim of purging black money from the economy.

1701:, bullion and jewelry." According to data from income tax probes, black money holders kept only 6% or less of their wealth as cash, suggesting that targeting this cash would not be a successful strategy. 4060: 9136: 2645:

index was below 8100 intraday. There were marginal effects on the stock market during November–December 2016. A data study (July 2016 – February 2017) of 54 companies across 13 sectors listed with the

5861: 8772: 5622: 4694: 3241:, however, praised the demonetisation, calling it “a courageous and substantive economic reform that, despite the significant transition costs, has the potential to generate large future benefits.” 9229: 8125: 5571: 3224:, former Chief Statistician and Planning Commission of India member, called it a "hollow move" since it did not really address any of the purported goals of tackling black money or fake currency. 7708: 9916: 6170: 8698: 7861: 3168:(PIL) to scrap the decision of demonetisation. The High Court dismissed the PIL, stating that it could not interfere in monetary policies of the government. Similar PILs were also filed in the 9309: 7029: 2068:

establishments making backdated entries. Money laundering using backdated accounting was carried out by co-operative banks, jewellers, sellers of mobile phones, and several other businesses.

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The consensus is that demonetisation was not the right move to target black money, and was unsuccessful. Moreover, it was based on an incorrect understanding of what constitutes black money.

6980: 6514: 5013: 9961: 9450: 8935: 8176: 5684: 5393: 4827: 9429: 5783: 2681:, which are heavily dependent on cash. Due to scarcity of the new banknotes, many farmers had insufficient cash to purchase seeds, fertilisers and pesticides needed for the plantation of 304: 285: 266: 8800: 7561: 32: 9114: 9091: 8676: 396: 10050: 8755: 7147: 6778: 6620: 6152: 8054: 7839: 7584: 6424: 5222: 7495: 4923: 4165: 9283: 6529: 5545: 7517: 7405: 6500: 5473: 4784: 4622: 4041: 1697:

recommended against demonetisation, saying in a report that "demonetisation may not be a solution for tackling black money or shadow economy, which is largely held in the form of

9211: 8875: 6710: 4647: 3558:, shops and business establishments were shut, with schools and colleges closed throughout the state, while movements of private vehicles were also disrupted in Northern Kerala. 9990: 9934: 9787: 9371: 8560: 5494: 3482:, questioned the government on the demonetisation move by stating "only 6% of black money in India is in cash to drive his point that demonetisation won't curb illicit wealth." 9555: 9493: 9054: 8646: 8106: 7684: 3538:

decided to observe 'Akrosh Diwas' as, a protest campaign day on 28 November and launch protests in front of banks, demanding that money be returned to people. In the state of

6806: 4586: 4401: 4375: 9193: 8158: 5208: 7367: 7015: 5709: 3342:) had initially appreciated the decision of demonetisation, but later said that the move had derailed the economy, and expressed skepticism about its outcome. Industrialist 1776:

banknotes in August 2016. The printing of new banknotes started in October when the news stories of forthcoming new banknotes appeared in the media. On 27 October 2016, the

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The use of demonetised banknotes was allowed for the payment of municipal and local civic body taxes, leading to a jump in their revenue collections. For example, the

1214: 8545: 7651: 5822: 1627:) of the ₹15.41 lakh crore in demonetised bank notes, or approximately 99.3%, were deposited in banks, leading analysts to state that the effort had failed to remove 9867: 8999: 7475: 7308: 5938: 1152: 10032: 8847: 8084: 7814: 6448: 3213:, called the demonetisation a "despotic action" and said that it "undermines notes, it undermines bank accounts, it undermines the entire economy of trust." Former 1647:

growth rate. It is estimated that 1.5 million jobs were lost. The move also saw a significant increase in digital and cashless transactions throughout the country.

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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 "

9896: 9637: 9036: 7938: 4085: 3941: 988: 9573: 6638: 5917: 1980:, which included income which had not been reported and thus was untaxed; money gained through corruption, illegal goods sales and illegal activities such as 8861: 8283: 6378: 6189: 1465: 723: 6724: 6123: 5519: 5419: 8345: 7085: 6327: 5903: 3276:

wrote that demonetisation was unnecessary and unsuccessful, while it damaged the economy and adversely affected the lives and rights of the Indian people.

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subsequently announced a suspension of toll collections on all national highways across the country until 2 December as well as acceptance of demonetised

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stated that 'the note ban had absolutely no impact on black money', and that record amounts of money had been seized in polls held after demonetisation.

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banknotes. In terms of volume, the report stated that 24% (around 22.03 billion) of the total 90.26 billion (9026.6 crore) banknotes in circulation were

1342: 7712: 5801: 10558: 9411: 2372:(demonetised version) banknotes saw an increase in 2016–17 and subsequently a decline in 2017–18. But in 2017–18, there was an increase in counterfeit 1127: 1122: 9476: 9069: 7909: 6832: 6756: 6404: 6067: 4746: 4673: 3206:

Most economists across the ideological spectrum, except those considered partisan, were broadly critical of the demonetisation as an economic policy.

8475: 7883: 5875: 2629:, the stock market indices dropped to an around six-month low in the week following the announcement. The day after the demonetisation announcement, 621: 8320: 7037: 6094: 6859: 3678: 401: 9353: 7629: 7428: 8735: 6468: 6434: 4817: 1255: 1245: 924: 326: 8527: 8213: 5979: 5445: 9389: 4354:"Demonetisation debate in Parliament: Disaster, says Chidambaram; high cash economy corrupt, counters Jaitley : India, News – India Today" 3682: 2992:

in November 2021 reviewed GDP trends in the years following the demonetization, and concluded that due to unpredented GDP contraction amid the

1556: 1186: 331: 321: 46: 9680: 8500: 6353: 1869:, claimed in a video that wealthy businessmen were informed about the demonetisation before it occurred. He later denied making the comments. 9813: 6742: 3995: 9732: 9017: 8062: 7001: 5889: 3577:'s spokesperson Gerry Rice told that it supported the efforts to fight corruption and illegal finances but cautioned about the disruptions. 9698: 6665: 5727: 3221: 1323: 256: 241: 8297: 8040: 7769: 7173: 6950: 6007: 5841: 5040: 4173: 9255: 3449:, questioned a statement of Modi from the unscheduled TV broadcast on 8 November, "If it was planned 10 months ago, how did RBI Governor 2541:

demonetisation. Five years after demonetisation, the currency in circulation was at a record high of ₹29.17 trillion on 29 October 2021.

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saying that the demonetisation was "atrociously planned" and that it did not appear to have combatted black money, while an article in

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led opposition which includes 13 political parties, opposed the government on the issue of demonetisation in the Winter Session of the

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reported collecting about ₹1.6 billion in cash payments of outstanding and advance taxes within the first four days of demonetisation.

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and strong base effects, “the waters are now far too muddied to make any scientific assessment about demonetisation’s impact” on GDP.

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On 28 October 2016, the total banknotes in circulation in India were valued at ₹17.77 trillion; what proportion of this derived from

1221: 1132: 4561: 10669: 10109: 8713: 8257: 4139: 2626: 1485: 1480: 8022: 7923: 7195: 7659: 4987: 3339: 2610: 2442: 1071: 829: 9055:"Kerala CM Pinarayi Vijayan, ministers stage dharna outside RBI office – Latest News & Updates at Daily News & Analysis" 8897: 6606: 4257: 10608: 8631: 3694: 1231: 2712:

Demonetisation resulted in the relative erosion of agricultural wages and weak bargaining power of farmers for their produce.

10086: 9328: 4511: 4477: 4443: 3659: 8612: 8364: 3670: 3087: 1460: 1142: 626: 553: 7755: 6137: 4015: 104: 10659: 6242: 3165: 1052: 679: 171: 6223: 5117: 10575: 8391: 6547: 5111:"Finance Ministry has reviewed the position regarding availability and distribution of all denominations of bank notes" 3917: 3479: 3229: 1549: 1495: 1470: 1347: 737: 475: 445: 180: 148: 3346:

criticised demonetisation, saying that not just the execution, but the concept of demonetisation was wrong in itself.

2976:, quarterly GDP growth rates would drop below 7% for an entire year at a stretch for the first time since June 2011. 2702: 1057: 1047: 548: 7971: 6204: 5376: 3573:

By and large, initial international response was positive which saw the move as a bold crackdown on corruption. The

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notes "knew what was coming", allowing them to preserve their money by converting it into smaller denominations. A

1199: 747: 538: 5014:"Demonetisation anniversary: Full text of Prime Minister Narendra Modi's speech from 8 November, 2016 – Firstpost" 4965: 3220:, called it a "major mistake" and said that the "damage" is likely to be much greater than any possible benefits. 10644: 3912: 3462: 1505: 1445: 1372: 1147: 655: 650: 7788: 10528: 9962:"BJP's Gujarat win proves GST, demonetisation aren't potent weapons; Congress needs new strategy to fight Modi" 8876:"Rs 500 & 1000 currency notes banned: Congress raises questions against Narendra Modi govt's shocking move" 4339: 3091: 2666: 1862: 1500: 1086: 718: 611: 225: 215: 5183: 10533: 10154: 6171:"Demonetisation impact: Greater Hyderabad Municipal Corporation collects over Rs 160 crore in just four days" 3261:

opined that it was difficult to see gains from demonetisation, while there might be significant costs to it.

2985: 2659: 1694: 1542: 1391: 1311: 1275: 694: 684: 645: 353: 220: 210: 163: 153: 7539: 3697:, INC secured the plurality while BJP came second and formed the government with the help of its allies. In 3384:

welcomed the demonetisation move by calling it a "bold step". Chief Ministers of several Indian states like

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on 20 February 2017 and then on 13 March 2017, it removed all withdrawal limits from savings bank accounts.

10538: 7585:"India paid hefty price for note ban, 5.7% GDP growth worrying: Kaushik Basu | Business Standard News" 5846: 5328: 5147: 4759: 1450: 1260: 809: 523: 502: 497: 492: 299: 280: 251: 235: 205: 7887: 4894: 3594:

welcomed the demonetisation move stressing that bringing transparency will strengthen the Indian economy.

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led a rally against demonetisation at Azadpur Mandi, the biggest vegetable and fruits wholesale market in

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The growth in eight core sectors such as cement, steel and refinery products, which constitute 38% of the

2579: 10654: 7840:"RBI dividend halves to Rs 30,659 cr: Demonetisation hero turns out to be villain for Narendra Modi govt" 7460: 3763:

As of November 2021, further increases in digital payments and bank notes in circulation have been seen.

3574: 3142: 2073: 834: 9158: 7997: 6911:"Analyzing the Impact of Demonetization on the Indian Stock Market: Sectoral Evidence using GARCH Model" 6515:"Demonetisation caused little disruption to Maoist economy in Bastar, extortion major source of funding" 4604: 3361:

welcomed the move but remained skeptical on the consequences that would follow. Chief Minister of Bihar

1204: 9659:""Worst Mistake of PM Modi's Career": World Media and Economists Decry Demonetisation "Havoc" in India" 9115:"Demonetisation: Rural household, honest taxpayers worst due to the step, says Parliamentary committee" 7336: 5306: 5148:"Withdrawal of Legal Tender Character of existing ₹ 500/- and ₹ 1000/- Bank Notes – Revision in limits" 3841: 3527: 3458: 3365:

supported the move. The demonetisation also got support from the then Chief Minister of Andhra Pradesh

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and many other major cities, sales of gold increased post-demonetisation, surging the price as much as

1812: 1475: 1101: 814: 689: 674: 480: 470: 465: 460: 455: 450: 440: 435: 430: 425: 420: 338: 9987:"Growth at 5% - India's economy slows, stalling once thriving manufacturing | the Economic Times" 9477:"OP Rawat: 'Note ban had absolutely no impact on black money. During polls we seized a record amount'" 10664: 10358: 10215: 10036: 9397: 8699:"Nobel winner Richar Thaler applauded PM Narendra Modi's demonetisation; did not favour Rs 2000 note" 3907: 3793: 3587: 3252:

that demonetisation 'looks like a bad idea, badly executed on the basis of some half-baked notions'.

2555: 1841: 972: 272: 9230:"Demonetisation of Rs 500, Rs 1000 notes: Mamata Banerjee leads protest march to Rashtrapati Bhavan" 8023:"Demonetisation: Rush for cash kills 2 in Kerala, 1 in Maharashtra; Congress blames Modi government" 7726: 6501:"Congress says demonetisation didn't affect Maoism, says 17 Naxal attacks took place since note ban" 5546:"'PM Modi Shifting Goalposts on Demonetisation': On 4th Anniversary Congress Asks What Was Achieved" 3973: 3701:, BJP worsened its performance but retained the majority. The BJP and its allies lost to the INC in 3065: 3026: 2780: 2742: 2487: 2421: 10674: 10147: 6565: 4143: 3655: 3515: 3402: 3354: 1428: 844: 790: 6743:"As India struggles for its next Rs 2,000, new currency seized across country can fill gunny bags" 4924:"Govt, RBI discussed note ban for six months; Directors warned against short-term negative effect" 4199: 1804:

had also covered a story on demands to withdraw the banknotes to prevent hoarding of black money.

8085:"Mumbai: Baby dies waiting for medical help as hospital refuses Rs 500 & 1000 currency notes" 4895:"The Minutes of the 561st meeting of the Central Board of Directors of the Reserve Bank of India" 3674: 3647: 3633: 3486: 2392:(new version) detected continue to increase while overall number declined in 2018-9 and 2019–20. 2061: 1455: 1285: 1250: 1022: 849: 543: 487: 135: 10134: 8677:"War on black money: Demonetisation is a courageous reform that will bring substantive benefits" 2637:

plunged by over 541 points. By the end of the intraday trading section on 15 November 2016, the

10477: 10467: 8231: 7016:"Demonetisation impact: Three sets of numbers tell us how Modi's gamble has slowed the economy" 5351:"Demonetisation rule modified, families can withdraw Rs 2.5 lakh for weddings from one a count" 5248: 3366: 3285: 3189: 3173: 3169: 3161: 2968: 1858: 1644: 1590: 1582: 1396: 1337: 1306: 998: 953: 27: 9847:"Demonetisation a litmus test for BJP: One year on, can Modi hold his sway on the electorate?" 9681:"Demonetisation atrociously planned, little evidence it combatted black money: New York Times" 8546:"Amartya Sen criticises demonetisation drive, says Narendra Modi declared all Indians 'crook'" 7562:"GDP growth rate down to 5.7% in April–June, demonetisation pain lingers | business news" 6690: 5890:"13 Ways In Which Indians Will Convert Their Black Money Into White Even After Demonetisation" 5209:"All note exchange stopped from today, PM Modi goes back on promise of hike after November 24" 3612:

that demonetisation was having positive macroeconomic effects. Swedish Minister of Enterprise

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disruption throughout economy, because it was carried out without prior study or research. An

10603: 10518: 10443: 10435: 10427: 10353: 8144:"Demonetization: Government not mourning over 100 deaths due to cash-crunch, says Opposition" 7518:"Demonetisation impact: GDP dips sharply in Jan–Mar to 6.1%; India loses fastest growing tag" 7406:"Demonetisation impact: GDP dips sharply in Jan–Mar to 6.1%; India loses fastest growing tag" 3651: 3329: 2698: 2669:(IIP), was only to 4.9 percent in November 2016, as compared with 6.6 percent a month prior. 1866: 1829: 1769: 1743: 1640: 1639:

stock indices fell over 6% on the day after the announcement. The move reduced the country's

1624: 1613: 1586: 1578: 1531: 1513: 1171: 929: 863: 780: 415: 5597: 4695:"Demonetisation: In the works for 6 months, 10 people in the loop, including Raghuram Rajan" 3328:) also supported the move, adding that it would also accelerate e-commerce. Infosys founder 2658:

There was a reduction in industrial output as industries were hit by the cash shortage. The

10419: 10411: 10403: 10321: 10316: 10311: 10275: 10267: 10230: 9699:"Little evidence that demonetisation has succeeded in combating corruption: New York Times" 9666: 7089: 4061:"Demonetisation may drag India behind China in GDP growth, rob fastest-growing economy tag" 3757: 3531: 3446: 2678: 2001: 1985: 1877: 1817: 1725: 1280: 1270: 1176: 1003: 993: 939: 904: 348: 9092:"Honest taxpayers, rural household hardest hit due to demonetisation: Parliamentary Panel" 7884:"Half dividend, full fallacy: RBI implies Modi & Urjit Patel got demonetisation wrong" 7174:"Oh-nion: Farmers in crisis dump produce in markets instead of selling at 50 paise a kilo" 5460:"Demonetisation Was Not Designed Only to Fight Black Money, Says Finance Minister Jaitley" 3942:"The Costs of Demonetisation: Death Toll Rises to 82, Eight Million Workers Remain Unpaid" 1832:

as invalid effective from the midnight of the same day, and announced the issuance of new

1714: 1574: 8: 10457: 10395: 10387: 10348: 10306: 10301: 10296: 10291: 10259: 10251: 10243: 9516:"State media praises Modi, but says he can learn from China's crusade against corruption" 7368:"GDP growth accelerates to 7.4 % in July–Sept. manufacturing rebounds significantly" 6260: 4947:"One year of note ban: The ultra-secret move that no one came to know for several months" 3673:

formed the government in six out of seven state legislative assemblies which went to the

3519: 3289: 3234: 3182: 3149: 1765: 1652: 1570: 1107: 1091: 1008: 934: 899: 360: 343: 261: 8834:"HDFC Chairman Deepak Parekh hits out at demonetisation drive, says it derailed economy" 8392:"Demonetisation is valid, says SC in 4:1 majority judgment; Justice Nagarathna dissents" 8055:"Three People Die While Waiting in Queue To Exchange Rs 500 and Rs 1,000 Currency Notes" 3732:

Please help update this article to reflect recent events or newly available information.

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usually sown around mid-November. Farmers and their unions conducted protest rallies in

9901: 9642: 9608:"India's Rs 500 And 1,000 Demonetization Is Lowering Interest Rates And Also Inflation" 9233: 8777: 8445:"Justice Nagarathna's dissent in demonetisation case — 'well-intentioned but unlawful'" 6695: 6453: 6429: 6409: 6405:"Demonetisation leads to highest ever surrender of Maoists in a month – Times of India" 6291: 5943: 5922: 5806: 5478: 4406: 4379: 4285:"Thanks to Demonetisation and GST, India's GDP growth hit a 4-year low at 6.5 per cent" 3902: 3894: 3621: 3523: 3433: 3429: 3417: 3378: 3129: 1977: 1667: 1628: 1440: 1418: 1265: 1096: 958: 889: 868: 528: 310: 291: 10012: 6691:"17% of cash seized in raids during demonetisation were in new notes – Times of India" 5063:"Demonetisation: Ambani, Adani were informed and thus made arrangements, says BJP MLA" 3373:

said demonetisation could lead to long term electoral reforms. Indian social activist

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reported in parliament that four people, three bank personnel and one customer of the

2021: 10500: 10174: 10082: 10054: 9713: 9588: 7998:"The Costs of Demonetisation: Farm Economy Takes a Hit, Mid-Day Meal Scheme in Peril" 7946: 7375: 7278: 6932: 6885: 4875: 4507: 4473: 4439: 4227: 3750: 3406: 3358: 3249: 2993: 1981: 1687: 1357: 824: 785: 752: 8848:"HDFC's Deepak Parekh says economy has derailed in short term due to demonetisation" 8177:"Around 105 died, but 'Twitter king' Modi didn't mention it: Lalu on demonetisation" 3974:"Withdrawal of Legal Tender Status for ₹ 500 and ₹ 1000 Notes: RBI Notice (Revised)" 10613: 10033:"How demonetisation is helping India transact under the shadow of Covid-19 in 2020" 10017: 6922: 6891: 6836: 6072: 5876:"Rs 500/Rs 1000 demonetisation: Temple money from hundis not to come under scanner" 4865: 3946: 3834: 3828: 3806: 3801: 3663: 3619:

The demonetisation also came in for sharp criticism from media outside India, with

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in new banknotes; they thus described the demonetisation exercise as being futile.

1768:(SBI) analysed possible strategies and effects of demonetisation. In May 2016, the 1490: 1367: 1352: 640: 7770:"Unprecedented Job Losses, Wage Decline in Unorganised Sector Post Demonetisation" 6981:"Slowdown due to demonetisation: PMI services shrinks in November after 17 months" 5623:"Demonetisation: Rs 14 lakh crore in old notes are back, only Rs 75,000 crore out" 4674:"India demonetization news: Modi's black money move kept a closely guarded secret" 3061: 3022: 2988:. The GDP started to recover from 2017–18 and clocked 8.2% growth in 2018–19. The 2776: 2738: 2650:

on stock market returns evidenced from NIFTY 50 and other NIFTY sectoral indices.

2483: 2417: 10119: 10076: 9454: 9287: 8321:"Unable to deposit demonetised currency in RBI, 1,000s to approach Supreme Court" 7540:"Demonetisation brings GDP down to 6.1 per cent: Top economists stand vindicated" 7130:"Farmers in Amritsar stage protest against demonetisation, burn PM Modi's effigy" 6783: 6607:"Demonetisation: Month later, long queues still outside banks and ATMs in Mumbai" 5732: 4789: 4501: 4467: 4433: 3535: 3493: 3489: 3475: 3421: 3413: 3389: 3385: 3273: 3225: 2078: 1764:

banknotes was initiated between six and ten months before it was a report by the

1402: 1377: 699: 669: 616: 6895: 6621:"Demonetisation pain returns: One-fourth of ATMs across India running dry again" 6287:"Are banks equipped to replace 2,300 crore pieces of Rs 500 and Rs 1,000 notes?" 6008:"How Successful was Demonetisation? Four Takeaways From the RBI's Annual Report" 5394:"Cabinet clears ordinance to punish people holding banned notes beyond deadline" 4587:"At least 4 months needed to replace demonetised notes, not 50 days: Here's why" 3586:

praised the move as a "fierce fight against black money and corruption." Former

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What the FAQ just happened! All your questions about Rs 500–1000 notes answered

9451:"As it happened: Bharat Bandh affects some states, business as usual in others" 8936:"Andhra CM Naidu asked for demonetisation of Rs 500, Rs 1,000 notes in October" 5904:"Demonetisation: Temples across India receive high currency notes as donations" 5474:"Demonetisation achieved objectives quite substantially: Govt – Times of India" 5281:"RBI removes limit on cash withdrawal, banks go back to pre-demonetisation era" 4314:"Demonetisation drive that cost India 1.5m jobs fails to uncover 'black money'" 4016:"Here is what PM Modi said about the new Rs 500, Rs 2000 notes and black money" 3822: 3613: 3599: 3591: 3504: 3370: 3305: 3301: 3293: 3245: 2384:

banknotes were found to be counterfeit. The number of counterfeit banknotes of

1598: 1362: 1226: 382: 377: 372: 9935:"Post-poll alliances were preferred by governor in Goa, Manipur and Meghalaya" 7148:"Farmers forced to dump their produce as note ban turns bumper crop worthless" 6779:"Toll tax suspended on national highways till Nov 11, banks open this weekend" 5842:"Back-dated receipts used for Apple iPhone sales after demonetisation: Report" 5710:"Demonetisation: In Chennai, To beat cash limit, they send full teams to bank" 5685:"Despite Rs 4000-cap on money exchange, loophole allows multiple transactions" 5598:"Instant Recall: How Modi Government Kept Changing Demonetisation's Goalposts" 1889:, Gujarat to withdraw cash following deposit of demonetised banknotes in bank. 10638: 10363: 9574:"India's Crackdown on Black Money Will Help Financial System: European Union" 8756:"HTLS 2016: Demonetisation gains uncertain, says Nobel laureate Paul Krugman" 7950: 7379: 7282: 6936: 5862:"Tiffin service to dental implants: All tried to beat system, swap old notes" 5307:"ATMs –Non-dispensing of Old High Denomination Notes – Closure of operations" 4879: 4822: 4754: 3813: 3551: 3335: 3309: 2694: 1800: 1782: 1594: 1317: 1076: 1037: 919: 909: 894: 795: 587: 119: 23: 10051:"Post demonetisation, notes in circulation on rise; so are digital payments" 9897:"BJP retains Gujarat, ousts Congress from Himachal Pradesh – Times of India" 7685:"Demonetisation effect: 1.5 million jobs lost in first 4 months of the year" 7218:"Demonetisation: At Gujarat protests, farmers dump milk, vegetables on road" 7104:"Demonetisation: At Gujarat protests, farmers dump milk, vegetables on road" 5420:"Govt notifies law to make possession of old Rs500, Rs1000 notes punishable" 4623:"Why govt's demonetisation move may fail to win the war against black money" 10205: 10170: 10072: 9917:"BJP juggernaut rolls on in Gujarat, tramples Congress in Himachal Pradesh" 9733:"Modi's bank note ban has inflicted pointless suffering on India's poorest" 9284:"Resolve cash crunch in 3 days or face rebellion: Mamata, Kejriwal to Govt" 7862:"Script gone wrong: RBI takes demonetisation hit and government gets a cut" 6927: 6910: 6068:"From GDP growth to black money, costs outweigh benefits of demonetisation" 5085:"Adanis, Ambanis already knew about currency ban: BJP MLA caught on camera" 3880: 3866: 3773: 3627: 3603: 3582: 3554:

saw protest marches and rallies led by opposition parties. In the state of

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Cash withdrawals from bank accounts were restricted to ₹10,000 per day and

1671: 742: 572: 390: 8917:"Demonetisation of Rs. 500, Rs. 1000 notes: Naidu had inkling of the ban?" 7060:"Demonetisation: Farmers fear loss of crops and income after currency ban" 6757:"Demonetization: With no cash on hand, 4 lakh trucks stranded on highways" 6588:"Demonetisation: Chaos grows, queues get longer at banks, ATMs on weekend" 6379:"Nearly 5 years since note ban: Cash with public rising, at all-time high" 2697:

against the demonetisation as well as against restrictions imposed by the

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from 16 January 2017. From 17 November, families were allowed to withdraw

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Center for the Advanced Study of India (CASI), University of Pennsylvania

9758: 9538:"Swedish ICT sector wouldn't have been so successful without Indian help" 9137:"Demonetisation created significant disruption throughout economy: Panel" 8284:"SC refers individual cases against demonetisation to constitution bench" 6725:"Over Rs 164 crore black money seized in new notes. Has note ban failed?" 6530:"Demonetisation effect: Funds tap turns dry for terror and Maoist groups" 5520:"RBI report on demonetisation: How Centre, BJP kept moving the goalposts" 4376:"Demonetisation: Opposition calls for countrywide protest on November 28" 3547: 3543: 3450: 3432:

to protest against the demonetisation. A memorandum was submitted to the

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Initially following demonetization, activities and attacks by the Maoist

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After demonetisation, there was an increase in the number of counterfeit

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per week per account from 10 to 13 November. This limit was increased to

1602: 1081: 914: 704: 9310:"Is Modi proving Manmohan Singh right with slew of U-turns on cash ban?" 8232:"Govt's demonetisation move fit for country's security, development: HC" 8126:"Infant's death: Doc booked over claims of refusing treatment in Mumbai" 6469:"This Is How Big Note Ban Will Affect Maoist Activities In Chhattisgarh" 5918:"Religious places getting over the 'demon' of note ban – Times of India" 4870: 4853: 2705:

which were ordered not to accept or exchange the demonetised banknotes.

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The government said that the main objective of the exercise was curbing

10190: 9788:"Assembly elections 2017: Modi loses no money in demonetisation gamble" 8159:"Mamata attacks Modi over cash withdrawal limit, demonetisation deaths" 7496:"Demonetisation effect: GDP growth slows down to 6.1% in March quarter" 7241:"Two years after demonetisation, farmers and rural workers are unhappy" 7030:"How Demonetisation Has Affected India's Agricultural And Food Markets" 6711:"Cash crunch? Rs 242 crore in new currency seized after demonetisation" 6328:"Cash in circulation jumps 19.1 per cent from pre-demonetisation level" 6153:"Did cash ban help raise tax base? ITRs rising, but not tax collection" 4785:"Journalist broke story about currency demonetisation a fortnight back" 4432:

Ghosh, Jayati; Chandrasekhar, C. P.; Patnaik, Prabhat (16 March 2017).

3325: 3317: 3300:) favored the demonetization in order to curb black money. Businessmen 3297: 2638: 2630: 1632: 1434: 1300: 1032: 819: 582: 10234: 9070:"Dear PM Modi, Demonetisation 'Brahmastra' Could Have Spared The Poor" 8986:"Demonetisation a revolutionary step to fight corruption: Anna Hazare" 6833:"Sensex sinks 514pts, Midcap down 4% on demonetisation & earnings" 6354:"Five Years Since Demonetisation, Value Of Cash In Circulation Up 64%" 4966:"Watch PM Modi's Entire Speech on Discontinuing 500, 1000 Rupee Notes" 3468:

called the situation "a financial emergency", saying, "It looks as if

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article that "demonetisation had been a failure of epic proportions."

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