"A history of demonetization in India"
-- The central government's move to withdraw Rs.500 and Rs.1,000
currency notes in circulation on Tuesday at such short notice may have come as
a surprise, but it's not the first time the govt. has demonetized banknotes.
-- Withdrawal of high-denomination notes is a radical measure the govt.
normally resorts to in an attempt to counter forgery.
-- It has been done at least twice (2-times) in India's history in the
past time. This time, the attempt is to crack down on black money.
-- In January 1946, Rs.1,000 and Rs.10,000 banknotes were withdrawn.
-- In
1954, Rs.1,000; Rs.5,000 and Rs.10,000 notes were reintroduced and were again
demonetized by issuing an ordinance on the morning of 16th January, 1978.
Regards, CA Rahul Gupta (Email: mrtandassociates@gmail.com
Source: Newspaper mint, 15-November-2016
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