Demonetization in India

The government can request the Reserve Bank to declare any existing currency notes as invalid in emergency situations. Demonetization is the process of making currency notes in circulation invalid and rendering them worthless. Demonetization is mainly implemented to control black money. Demonetization was first implemented in the country on January 12 , 1946. The government withdrew the 500, 1000, and 10000 rupee notes that were in circulation at that time. After independence 500, 1000, and 10000 rupee notes were reissued in 1954. The 5000 rupee note was also in circulation at that time. The government implemented the second demonetization in 1978. The 1000, 5000, and 10000 rupee notes were withdrawn at that time. In 2000, the Reserve Bank reissued the 1000 rupee note. The Reserve Bank of India has also ordered that all currency notes printed before 2005 should be returned to banks by December 31, 2015. The third demonetisation came into effect on November 9, 2016. The government withdrew Rs 500 and Rs 1000 notes. The current denominations are Rs 1, 10, 20, 50, 100, 200, 500 and 2000.