Which currency notes were demonetised by the government of India in 2016?

Question

Question

This question was previously asked in

SSC GD Constable (2022) Official Paper (Held On : 07 Feb 2023 Shift 1)

Answer 1

The correct answer is ₹500 and ₹1,000

Key Points

On 8 November 2016, the government of India announced the demonetization of all Rs. 500 and Rs. 1000 notes of the Mahatma Gandhi Series.
This announcement also included the issuance of new Rs. 500 and Rs. 2000 banknotes in exchange for old notes.
Due to the demonetization drive, there is a considerable increase in the number of Income Tax Returns (ITRs) filed.
Objectives of Demonetisation:
- To discourage the use of high-denomination notes for illegal transactions and thus curb the widespread use of black money.
- To encourage the digitization of commercial transactions, formalize the economy and so, and boost government tax revenues.
Operation Clean Money:
- It was launched by the Income Tax Department (CBDT) for the e-verification of large cash deposits made during the period from 9th November to 30th December 2016.

Important Points

History of Demonetization -

In 1946, the currency notes of Rs 1,000 and Rs 10,000 were removed from circulation.
In 1978, Prime Minister of India Morarji Desai announced the currency ban taking Rs 1000, Rs 5000 and Rs 10,000 out of circulation.

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