What is demonetisation?

Demonetisation happens when there is a change in currency notes, when old note replace from new notes. Respected Prime Minister of india Shri Narendra Modi announced the demonetisation on Nov 8, 2016, that old 500 and 1000 notes will be worthless and they had to exchange their notes till the end of the year from 2000 rupee and 500 rupee notes.This step is taken by government to restrain the black money of the country.

November 8 2016 what's the day when rupee 500 and 1000 demonetisation notes were withdrawn from circulation. It is result in withdrawal of 86% of currency in circulation. People were advised to go to the bank to replace old notes with new up to a limit.

There was a restriction on cash withdrawal. The main aim of demonetisation was to curb corruption, check on use of illegal notes and activities and especially the accumulation of Black Money e generated by not declining in income to income tax authorities.