ABSTRACT

Demonetization means that Reserve Bank of India has withdrawn the old ₹500 and ₹1000 notes as an official mode of payment. According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender. Demonetization is the act of stripping a currency unit of its status as legal tender. Demonetization is essential whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit. The demonetisation was done in an effort to stop the counterfeiting of the current banknotes alleged to be used for funding terrorism and for cracking down on black money in the country. Following the announcement by the Prime Minister  and the Governor of the Reserve Bank of India (RBI), Urjit Patel made a press release with details on the procedure for exchanging the 500 and 1000 rupee notes that are currently in circulation. On 8 November, other than the notification that these denomination will be discontinued.  This study mainly used secondary data which is collected from different newspapers and websites.

Key words: Demonetization, Currency, India, stripping