Quick Answer: When was the first Demonetisation done in India?

On 12 January 1946, High Denomination Bank Notes (Demonetisation) Ordinance 1946 was passed by the then Governor General of India, Field Marshal Archibald Wavell, 1st Earl Wavell ceasing 500 paise, 1000 paise, and 10000 paise to be legal tender.

When was first time demonetisation in India?

It demonetised banknotes of the denominations of Rs 500 and above with effect from January 13, 1946. Some of the parallels with the demonetisation in 2016 are uncanny.

Who did demonetisation in 1978?

41 years ago, Morarji Desai’s govt also demonetised high value banknotes. On 16 January 1978, the Janata Party-led government demonetised Rs 1,000, Rs 5,000 and Rs 10,000 banknotes to weed out black money.

When was demonetisation done?

On November 8, 2016, Prime Minister Narendra Modi had announced ‘demonetisation’ to weed out black money from the country. The move, which saw the currency notes of Rs 500 and Rs 1,000 denominations getting banned, wiped out 86% of India’s currency overnight.

Who announced demonetisation in 1946?

Kuwait: Exactly 70 years before the Indian demonetization act of 2016, on January 12, 1946, the Viceroy and Governor General of India, Sir Archibald Wavell, promulgated the High Denomination Bank Notes (Demonetisation) Ordinance, 1946.

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Who did 1st demonetisation in India?

On 12 January 1946, High Denomination Bank Notes (Demonetisation) Ordinance 1946 was passed by the then Governor General of India, Field Marshal Archibald Wavell, 1st Earl Wavell ceasing 500 paise, 1000 paise, and 10000 paise to be legal tender.

When did demonetization happen in India before 2016?

The Indian government had demonetised banknotes on two prior occasions—once in 1946 and once in 1978—and in both cases, the goal was to combat tax evasion via “black money” held outside the formal economic system.

Which country demonetized first?

USA (1873) One of the earliest instances of demonetization was in the United States. Where, the Coinage Act of 1873 mandated removal of silver in favor of adopting the gold standard as the legal tender. This led to a contraction of the money supply and subsequently a 5-year economic depression in the country.

What is the history of demonetization?

Demonetisation occurred in India earlier, in 1978, when the Janata Party coalition agreed to eliminate the 10,000, 1000, and 500 rupee notes in order to combat black money in the economy.

Was demonetisation in India a failure?

An analysis of the data reveal that demonetisation has failed to meet its stated goals except in certain areas such as encouraging more digital transactions and more formalisation of the financial system. But the exercise has failed to meet the key objectives, mainly addressing the problem of black money.

Did demonetisation help India?

The result has been an economic slowdown even before the Covid-19 pandemic hit in 2020. Demonetisation was an ill-advised step that did not achieve any of its goals, even after the goalposts were shifted. But it damaged the economy no end, especially the unorganised sector.

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When was RBI established?

Three years back, on November 8, 2016, Modi, in a televised address had announced that Rs 500 and Rs 1,000 currency notes — 86 per cent of all currency notes in circulation in value — would cease to be legal tender.