How Modi's DARING decision to BAN Currency changed the Indian ECONOMY

Demonetization refers to the process of stripping a currency unit of its status as legal tender, rendering it unusable as a medium of exchange. In November 2016, the Indian government announced a surprise demonetization of high-value currency notes of Rs. 500 and Rs. 1000, in an effort to curb corruption, counterfeit currency, and terrorism financing.

The move caused chaos across the country, with long lines forming outside banks and ATMs as people rushed to exchange their old notes for new ones. The sudden withdrawal of 86% of the country's currency in circulation led to a severe cash crunch and impacted businesses, particularly those in the informal sector that relied on cash transactions.

Despite initial chaos, the Indian government claimed that the demonetization move was successful in achieving its intended objectives. The government cited a significant increase in tax collection, a decline in cash-based transactions, and the seizure of black money and counterfeit currency as evidence of its success. However, many economists and experts have criticized the move, pointing to its negative impact on the economy and its failure to achieve its intended objectives in the long run.