DEMONETIZATION : LEARNINGS Demonetization is an act of stripping a currency unit of its status as legal tender. This action is taken by various countries including United States Of America on different occasions to achieve different objectives. In the recent past India has witnessed an extensive demonetization exercise and more than 15 Lakhs currency notes of Rs. 500 & Rs. 1,000 denomination ceased to be legal tender. This is not the first demonetization incident in India. Earlier, Rs, 1,000 and Rs 10,000 banknotes, which were in circulation, were demonetized in January 1946, primarily to curb unaccounted money. The higher denomination banknotes in Rs 1,000, Rs. 5,000 and Rs 10,000 were reintroduced in the year 1954, and these banknotes (Rs 1,000, Rs 5,000 and Rs 10,000) wer...
New risk areas in banking and mitigation measures to ensure safe banking