The Government of India made an announcement to demonetise ₹500 and ₹1,000 on:
November 8, 2016
Understanding India's Demonetisation Announcement
The question asks for the specific date when the Government of India made the announcement to demonetise the existing series of ₹500 and ₹1,000 currency notes. This was a significant economic event in India.
The Demonetisation Decision Date
The announcement regarding the demonetisation of ₹500 and ₹1,000 notes was made by the Prime Minister of India. This step was aimed at curbing black money, counterfeit currency, and terror financing.
The exact date of this major announcement is crucial to understanding the timeline of this event.
Analyzing the Options
Let's look at the provided options:
- November 18, 2016
- November 8, 2016
- November 16, 2016
- November 6, 2016
We need to identify which of these dates corresponds to the official announcement date of the demonetisation of ₹500 and ₹1,000 notes in India.
Confirming the Correct Date
Based on historical records and official announcements, the Government of India announced the demonetisation of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series on the evening of November 8, 2016.
This meant that these notes ceased to be legal tender from midnight of the same day.
Detailed Explanation of the Event
The demonetisation was a sudden move aimed at bringing hoarded wealth back into the formal economy and disrupting illegal activities funded by cash. Citizens were given a specific period to deposit or exchange their old ₹500 and ₹1,000 notes at banks and post offices.
New ₹500 and ₹2,000 notes were subsequently introduced.
Conclusion
The announcement for the demonetisation of ₹500 and ₹1,000 notes by the Government of India was made on November 8, 2016.
Therefore, the correct option is November 8, 2016.
Revision Table: India Demonetisation Key Facts
| Event | Details |
|---|---|
| Announcement Date | November 8, 2016 |
| Currency Notes Affected | ₹500 and ₹1,000 (Old Series) |
| Notes Ceased to be Legal Tender | Midnight of November 8, 2016 |
| Government Body Responsible | Government of India (Announced by Prime Minister) |
| Primary Objectives Announced | Curb black money, counterfeit currency, terror financing |
Additional Information: Demonetisation Context
Demonetisation is the act of stripping a currency unit of its status as legal tender. It is usually done whenever there is a change of national currency. In the context of the 2016 Indian demonetisation, it was specifically targeted at high-denomination notes already in circulation.
- The Reserve Bank of India (RBI) played a crucial role in implementing the process, including managing the exchange and deposit of old notes and the distribution of new currency.
- The move led to significant short-term impacts on the economy, including queues at banks, a temporary cash crunch, and disruptions in various sectors.
- The long-term effects of the 2016 demonetisation are still debated among economists.
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