This presentation provides a detailed explanation of the purpose behind the sudden demonetization of Indian currency. It highlights the process of exchange, deposit, withdrawal & payment with the demonetized currency notes.

2. In a special and sudden address to the
nation at 8:00 p.m. on November 8, 2016 on
national television , Indian Prime Minister
Narendra Modi announced that Rs. 500 and
Rs. 1000 will no longer be considered legal
tender. However, on deeper inspection, it
appears to be well planned and positively
motivated.

3. • Eliminating majority of the black money as it is usually kept in notes of Rs.
500 and Rs. 1000, notes of the highest denomination.
• Flushing out counterfeit notes which were being used to finance terrorism
& other subversive activities.
• Eliminating the use black money to fund the upcoming state elections.
• Rendering the money made by illegal betting on the US Presidential
elections useless.
• By allowing a very small window, it is difficult to convert clack money into
white money.

4. • Rs. 1000 and Rs. 500 notes have been demonetized effective from November
9,2016.
• Government hospitals & counters for railway, bus and air tickets will accept
Rs. 500 & Rs. 100 notes till 11 November,2016.
• Petrol stations authorized by public sector oil companies, milk booths &
crematoria & burial grounds will accept Rs. 500 & Rs. 1000 notes till 11
November, 2016.
• New series bank notes of Rs. 500 & Rs. 2000 will be introduced for circulation
from November 10,2016.
• Notes of Rs. 100 and lower denominations and all coins will continue to be
legal tender.
• Online transactions and card payments will not be affected.

6. The effectiveness and impact of this
step taken by the Indian Government
will be visible and felt only after few
weeks to months. Immediately, it will
result in inconvenience to common
man to exchange Rs. 500 & Rs. 1000
notes in his possession & procure the
appropriate the appropriate currency
denomination for day-to-day survival,
especially in view of the fact that
enough legal currency may not
immediately available for a billion- plus
population.