What was the purpose of demonetisation in India?

There were three main economic objectives of demonetisation—fighting black money, fake notes and creating a cashless economy by pushing digital transactions.

When did the Indian currency change?

The first series of coins with the new rupee sign started in circulation on 8 July 2011. Before this, India used “₨” and “Re” as the symbols for multiple rupees and one rupee, respectively.

What can demonetization achieve?

What can demonetization achieve?

• Increased Savings – As a result of demonetization, people will tend to deposit their cash in the bank rather than at home.
• Lower lending rates – With currency demonetization, money moves from people to banks and financial institutions.

Was demonetization successful?

The data on Income tax returns filed also confirms the success of the demonetisation of the scheme. According to I-T Department data, number of income tax returns filed grew 6.5 per cent in FY 2015 to 40.4 million. It surged 14.5 per cent in FY 2016 and then jumped 20.5 per cent in FY 2017, the year of demonetisation.

Which bank in India has authorized to issue Rs 5000 notes?

Reserve Bank of India has been authorized to issue notes of Rs. 5000 and Rs. 10000 also. In fact, as per RBI act, RBI can issue any note of any denomination but NOT exceeding Rs. 10,000. The notes denomination is notified by Government and RBI acts accordingly.

What are the denominations of paper currency notes in India?

At present, paper currency notes in India are issued in the denomination of Rs. 5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1,000. The printing of Rs. 1 and Rs. 2 denominations has been discontinued, though the notes in circulation are valid as per the Coinage Act 2011.

What is the role of RBI in minting of Indian currency notes?

RBI discusses with the Government of India with respect to the denomination, designing, and security features of the banknotes to be printed in the country and circulated. The minting of Re.1 currency coins (formerly Re.1 currency notes) and other coins fall within the jurisdiction of the GOI.

Which was the first banknote printed by the independent India?

After gaining Independence in 1947 and in 1950s when India become Republic, India’s modern Rupee reverted back to the design of signature Rupee coin. The symbol chosen for the paper currency was the Lion capital at Sarnath which replaced the George VI series of bank notes. So, the first banknote printed by the Independent India was a 1 rupee note.