Vijayaveelamegavarman, Durga, K.Sundaramoorty
In a bold move, he declared that the five hundred and a thousand Rupee notes cannot be monetary system from time of day, eighth Gregorian calendar month 2016. The tally can issue new chip based mostly Rs. 500 and Rs. 2,000 notes which can be placed in circulation from Rupee can stay monetary system andcan stay unfazed by this call. This live has been taken by the PM in an endeavors to handle the corruption, black cash, coercion and counterfeit notes. This move is predicted to cleanse the formal financial system and discard black cash at an equivalent time. one among the explanations that prompted the govt. to devaluate Rs. 500 and Rs. a thousand notes is that their circulation wasn't in line with the economic process. As per the Finance Ministry, throughout 2011-2016 periods, the circulation of all notes grew four-hundredth however the circulation of Rs. 500 and Rs. a thousand notes went up by seventy six and 109% severally. comparatively speaking, the economy has grown up solely by half-hour that is far below the cash circulation.At mixture level, this move can considerably eliminate the prevailing stock of black cash, pretend currency and can profit the economy within the medium- to long-term, but, the question on however the creation of black cash within the future are prevented still remains unrequited
Demonetization