8 November 2016. On this very day, the Government of India announced the “demonetisation”, also called “notebandi” which meant ₹500 and ₹1,000 notes would cease to be legal tender.
It’s been almost a year since Demonetisation. The ruling party BJP say they will observe “anti-black money day” on 8 November 2017 to mark the completion of one year of demonetisation. On the other hand, Opposition party Congress with other 18 parties will observe the first anniversary of Demonetisation as a “Black Friday”.
Demonetisation did receive a lot of criticisms from opposition parties(I guess they expected it). There were countless debates about demonetisation in both the houses of Parliament and all the News channels(Ofcourse! How on the earth they can miss this golden opportunity to have infinite debates over pros and cons of demonetisation).
As of August 2017, 358 ATMS were shut down to boost cashless economy, reports Times Of India.
Reasons why Demonetisation was done:-
-Curb Black money
-To promote digital payments/ Digital India
-Crack down on shell companies
-Crack down on counterfeit cash which are mostly used in to fund illegal activity and terrorism
-Cash shortage (For few months)
-Long queues in front of banks
(According to Wikipedia, In March 2017, the government stated that they received no official report on deaths connected to demonetisation, On the other hand, opposition claimed that over 100 people died as they had to stand in long queues to exchange their old notes with new one)
-Disrupted Transportation(Due to Cash shortage)
-Job loss in small enterprises
Total demonetised notes(₹500 and ₹1000)- ₹15.4 trillion
New bank notes(₹500 and ₹2000) recirculated in market- ₹9.2 trillion
[as of 10 January 2017]
Bank notes returned back to system- 97%
Increase in Digital payments- 56%
Suspicious transactions identified- 4,73,003
Undisclosed income- ₹29,213 crore
New tax payers emerged- 56Lakh