Queue at Bank to Exchange INR 500 and 1000 Notes – Salt Lake City – Kolkata 2016-11-10 02103. 1000 banknotes of the Mahatma Gandhi Series. 2000 banknotes in exchange for the demonetised banknotes. The announcement of demonetisation was followed by prolonged cash shortages in the weeks that followed, which created significant divisas hdfc throughout the economy.
According to a 2018 report from the Reserve Bank of India, approximately 99. 41 lakh crore that had been demonetised, were deposited with the banking system. 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. The Indian government had demonetised bank notes on two prior occasions—once in 1946 and once in 1978—and in both cases, the goal was to combat tax evasion via “black money” held outside the formal economic system.
In 2012, the Central Board of Direct Taxes 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 benami properties, bullion and jewellery. 1000 banknotes was initiated between six and ten months before it was announced, and was kept confidential. In April 2016, a report by the State Bank of India analysed possible strategies and effects demonetisation. The printing of new banknotes started in October when the news stories of forthcoming new banknotes appeared in the media. The Union cabinet was informed about the plan on 8 November 2016 in a meeting in the evening called by the Indian Prime Minister Narendra Modi.