Download : Demonetization and its effects in India PDF
The term demonetisation has become a household name since the government pulled the old Rs 500 and Rs 1,000 notes out of circulation. While as per dictionary demonetisation means “ending something (e.g. gold or silver) that is no longer the legal tender of a country”, one needs to see if there is anything more to the word. ET shares details of the word that has got all Indians worked up over the past three weeks.
What is demonetisation?
When a currency note of a particular denomination ceases to be a legal tender it is termed as demonetisation. But since our government is replacing the old Rs 500 notes with newer ones and doing away with the Rs 1,000 notes, it would be more appropriate to call the move as `scrapping’ or `phasing out’ of certain currency notes.