Which currency notes were demonetized by the government of India in 2016?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. ₹500 and ₹1,000
At midnight on the same day, Shri Narendra Modi proclaimed that all ₹500 and ₹1,000 banknotes from the Mahatma Gandhi Series were no longer valid for circulation.
- He also announced that the demonetized banknotes will be replaced with new ₹500 and ₹2,000 banknotes from the Mahatma Gandhi New Series.
- According to the government letter, the proposal was made for two main reasons:
- (1) While India's economy grew by barely 30% between 2011 and 2016, the quantity of 500- and 1,000-rupee bills increased by 76 and 108 percent, respectively; and (2) cash was usually used to facilitate "black money."