The act of demonetization in India is one of the biggest cases of demonetization in history. In early November 2016, the Indian government decided to invalidate billions of 500 and 1,000 rupees bank notes. The major reason for doing this was to encounter the illegal activity of black money from the economy. This black money included a range of illegal activities like tax dodging, financing terrorism, money laundering, etc. the un-evitable influence of this was weeks of economic disruption, long lines of people standing at banks and even several deaths were also reported.
The demonetizing effect in India influenced about 86% of the country’s circulating cash. On November.8, 2016 prime minister Narendra Modi declared these banknotes of 500 and 1,000 worthless. People were given time until the end of that year to exchange the banknotes with newly introduced notes of 2000 rupee and 500 rupee bills.
The change brought by the Indian government created chaos. The country’s 200,000 ATMs were operational which makes 60% of the total ATMs in the country. The new changes showed new rupee notes with different specifications which included size and thickness that required recalibration of ATMs. However, Indian government officials said that the changes have achieved their economic goals.
Do you know that you can send money to Ghana, Philippines & Other countries using ACE Money Transfer?