In November 2016, high-value currency notes were demonetised in India. People were asked to deposit their old notes in their bank accounts or exchange them for new notes at banks. For some weeks, the old notes were still accepted at petrol pumps, government hospitals and for payment of government dues such as taxes and power bills. There were long queues outside banks and ATM booths, and the shortage of currency in circulation had an adverse impact on economic activities for a while. However, things improved with time. The move also brought a large number of people into the tax net, and households and firms began to shift from cash to electronic payment technologies.
Under the demonetisation of November 2016, which old currency notes were no longer legal tender?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs 500 and Rs 1000 notes
In November 2016, the old Rs 500 and Rs 1000 notes stopped being legal tender. New notes of Rs 500 and Rs 2000 were brought in.
NCERT (2026-27): “Box No. 3.2: Demonetisation Demonetisation was a new initiative taken by the Government of India in November 2016 to tackle the problem of corruption, black money, terrorism and circulation of fake currency in the economy. Old currency notes of Rs 500, and Rs 1000 were no longer legal tender. New currency notes in the denomination of Rs 500 and Rs 2000 were launched. …” |