ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Demonetisation is referred to as the process of stripping a currency unit of its status to be used as a legal tender. In simple words, demonetisation is the process by which the demonetised notes cease to be accepted as legal currency for any kind of transaction.

Detailed explanation-2: -People were asked to surrender these notes to the bank by a specific period and receive new Rs. 500, Rs. 2, 000 or other currency notes. This is known as ‘demonetisation’.

Detailed explanation-3: -demonetized; demonetizing; demonetizes. Synonyms of demonetize. transitive verb. : to stop using (a metal) as a monetary standard. : to deprive of value for official payment.

Detailed explanation-4: -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.

Detailed explanation-5: -On 8 November 2016, the Government of India announced the demonetization of all ₹500 and ₹1, 000 banknotes of the Mahatma Gandhi Series. It also announced the issuance of new ₹500 and ₹2, 000 banknotes in exchange for the demonetized banknotes. The main objective of this demonetization is to curb black money.