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WHAT IS DEMONETISATION? On 8 November 2016, the Government of India announced the demonetisation of all ₹500 (US$7.40) and ₹1,000 (US$15) banknotes of the Mahatma Gandhi Series on the recommendation of the Reserve Bank of India (RBI). [2] The government claimed that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism. [3] [4] The sudden nature of the announcement—and the prolonged cash shortages in the weeks that followed—created significant disruption throughout the economy, threatening economic output. [5] [6] The move was heavily criticized as poorly planned and unfair, and was met with protests, litigation, and strikes. Prime Minister of India Narendra Modi announced the demonetisation in an unscheduled live televised address at 20:00 Indian Standard Time (IST) on 8 November. [7] [8] In the ann
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