Nine years ago... An announcement by PM Modi caused a stir across the country, with long lines forming outside banks.
Nine years ago... An announcement by PM Modi caused a stir across the country, with long lines forming outside banks.
Demonetization: Today marks nine years since demonetization, but the memory is still fresh in people's minds. Following this, the RBI issued new 2,000 rupee notes for the first time to maintain cash flow in the system.
Demonetization: Today marks nine years since demonetization. On November 8, 2016, at 8 p.m., Prime Minister Narendra Modi addressed the nation. He announced the immediate demonetization of 500 and 1,000 rupee notes.
This led to chaos across the country. People were at a loss for what to do, and long lines formed outside banks and ATMs. Even though demonetization marks nine years since demonetization, the memory is still fresh in people's minds. Following this, the RBI issued new ₹2,000 notes for the first time, but these notes were withdrawn in 2023, making them no longer valid.
99% of the money is back in the system
Demonetization was intended to curb black money and counterfeit currency. It also aimed to prevent terror funding. Nine years after demonetization, most people still believe that black money has not been fully recovered and remains in the system.
The fight against black money continues. According to an RBI report, of the total ₹15.44 lakh crore in notes withdrawn from the system, ₹15.31 lakh crore has been returned to banks. This means that approximately 99% of the money has returned to the system. However, counterfeit notes remain in circulation. Even today, reports of seizures of counterfeit notes continue to emerge.
The Era of Digital Payments Begins
However, after demonetization, the era of digitalization gained momentum. As cash became scarce, people began adopting digital payments. Apps like Paytm, PhonePe, and Google Pay became popular. The reach of these apps began to grow, from cities to villages. Today, approximately 140 million transactions are being processed daily through UPI in the country, a multiple of 2016. This can be considered one of the successes of demonetization.
Memories Still Fresh in Mind
People differ on whether PM Modi's decision to demonetize was right or wrong. However, it dealt a significant blow to the rural economy and small businesses. At the time of demonetization, the situation was such that people would wake up early in the morning and stand in lines outside banks and petrol pumps. People stood for hours under the open sky in the bitter cold, waiting for their turn to exchange old notes. Bank employees also worked tirelessly day and night during this period. Even today, all these memories are fresh in the minds of people about the kind of problems they had to face during that time.
