Do you agree with the view that demonetisation of 500 and 1000 rupee notes would help the government in lowering its fiscal deficit?

(c) It is true that demonetisation would help the government to lower its fiscal deficit. Because of demonetisation, shadow economy (black money economy) will shrink. Unaccounted output would now be accounted as a part of GDP.

How does demonetisation help India?

India saw a surge in digital transactions after demonetization that was also lowering traditional transactions. Digital transactions have significantly grown since 2017 in India. On the other hand, as per the RBI report, demonetisation has helped India become a lesser cash-based economy.

When did the government Demonetize the 500 and 1000 rupee notes?

8 November 2016
On 8 November 2016, the Government of India announced the demonetisation of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series.

What is the meaning Demonetisation?

Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change in national currency. The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins.

How does demonetisation affect black money?

Black money failure Did demonetisation achieve the target of killing black money? According to RBI data, almost the entire chunk of money (more than 99 percent) that was invalidated came back into the banking system. Of the notes worth Rs 15.41 lakh crore that were invalidated, notes worth Rs 15.31 lakh crore returned.

What is demonetisation mention any two impacts of demonetisation on Indian economy?

the main object of demonetization is to reduce corruption and reduce black money and fake currency. The main conclusion is that demonetization is positively affect on some part of Indian economy and also negatively affecting to some part of Indian economy.

Was demonetization of 500 rupee notes a ‘puzzle’?

New Delhi: Former Finance Minister and senior Congress leader P. Chidambaram today said the government’s decision to demonetize 500 and 1,000 rupee notes and introduce 2,000 rupee notes was a “puzzle”. “They demonetized 500 and 1,000 rupee notes and introduced ₹ 2,000.

How many 500 rupee notes are there in India?

According to the RBI, 16.5 billion Rs 500 and 6.7 billion Rs 1,000 notes are currently in circulation (or at least were, immediately prior to the announcement), with the 1,000 rupee bill representing 39\% of all notes in circulation and the 500 rupee representing 45\%.

When will the new Rs 500 note be demonetized in India?

As of 12:00 am on November 9, all of the latest series of Rs 500 and Rs 1,000 banknotes have been demonetized.

When did India demonetize banknotes?

But demonetization is not without precedent in India itself. In 1978, India demonetized 1,000, 5,000 and 10,000 rupee banknotes, ostensibly in an earlier effort to fight corruption. According to the High Denomination Banknote (Demonetization) Act of 1978, the three notes ceased to be legal tender as of January 16, 1978.