On the fourth anniversary of Demonetisation, Prime Minister Narendra Modi tweeted, “Demonetisation has helped reduce black money, increase tax compliance and formalization and given a boost to transparency. These outcomes have been greatly beneficial towards national progress. #DeMolishingCorruption.”
Demonetisation has helped reduce black money, increase tax compliance and formalization and given a boost to transparency.
— Narendra Modi (@narendramodi) November 8, 2020
Prime Minister Narendra Modi had, on 8 November 2016, via a televised address announced that the currency notes of denominations Rs 500 and Rs 1000 would cease to be legal tenders with effect from the midnight and that new currency notes in the denominations of Rs 500 and Rs 2000 would be issued in exchange for the demonetised banknotes.
The move led to nearly 86 per cent of the currency in circulation becoming null and void from the midnight of the announcement.
Prime Minister Modi had said that the step was taken to check the black money, counter counterfeit cash, terrorism and promoting cashless economy by pushing digital transactions.
According to the Reserve Bank of India (RBI) data, more than 99 per cent, i.e. of the Rs 15.41 lakh crore worth cancelled notes, currency notes worth Rs 15.31 lakh crore were returned which is approximately 99.3% of the demonetised notes.