On this day in 2016, Government Of India announced ban on currency of ₹500 and ₹1000, and issuance of new bank notes of ₹500 and ₹2000.Prime Minister Narendra Modi had claimed that this action of demonetisation would curtail the shadow economy and reduce the use of illicit and counterfeit cash to fund illegal activity and terrorism.The announcement was followed by prolonged cash shortages in the weeks that followed, which created significant disruption throughout the economy.Initially, the move received support from several bankers as well as from some international commentators. However, the move was also criticised as poorly planned and unfair, and was met with protests, litigation, and strikes against the government in several places across India. Demonetisation made India a lesser cash-based economy, based on an RBI study. In the picture: Queues outside a bank to exchange demonetised banknotes in Kolkata on 10 November 2016.
