Page 514 - SSB Interview: The Complete Guide, Second Edition

hands, expanding the envelope of their achievement. We see these success
stories everywhere and every day at the workplace, in the arena of politics,
sports and entertainment and of course, at home.

6. DEMONETISATION

1. 8 November 2016 was a red-letter day in the history of the Indian
economy. In a swift and sudden announcement, the Prime Minister

announced the demonetisation of the erstwhile 500 and 1000 rupee notes

from midnight that evening. The announcement caught the entire nation
by surprise and the resultant pandemonium lasted for several months

due to the severe disruption in the economic activity of the country,

which till then had largely been based on cash transactions in every
sphere of the financial spectrum.

2. This move was initiated for the following possible reasons:

a. To eradicate black money.

b. To flush out fake money in circulation.
c. To starve the terror funding.

d. To widen the tax base by forcing people to deposit money in their
accounts using PAN details.

e. To encourage digital transactions in every financial activity so as to

enable a cashless and transparent society.

3. The Process

a. The announcement was made at 8 pm on 8 November 2016.

b. With effect from midnight, 500 and 1000 rupee notes would cease

to be legal tender.

c. The old invalid notes could be exchanged for new 2000 and 500

rupee notes over the next fifty days.