Demonetisation

A decade after demonetisation, digital payments have surged, but cash has returned to circulation, highlighting India's cash paradox

Demonetisation failed to deliver a lasting reduction in cash circulation or clear evidence of black money being unearthed, while causing widespread disruption to businesses and individuals.

Macro Matters Episode 11 examines Sebi's proposed tax relief for foreign investors, the Opposition's voting-rights rally, 10 years of demonetisation and the impact of the 2026 US midterm elections. An

India's taxpayer base more than doubled and direct-tax collections more than tripled in a decade. But how much of this growth can be attributed to demonetisation? Here's a look at the 10-year data

A decade after demonetisation, currency in circulation has more than doubled, even as UPI transactions have surged, showing that Indians are using digital payments without giving up cash

The National Commission noted that the government notification did not confer any right on the bank to refuse acceptance of deposits; it could only refer them for scrutiny

The National Consumer Disputes Redressal Commission (NCDRC) has directed Axis Bank to pay Rs 3.19 crore to a Delhi-based logistics company, holding the bank guilty of "deficiency in service" for refusing to accept demonetised currency notes for deposit during the 2016 demonetisation window. The commission, comprising presiding member AVM J Rajendra and judicial member Anoop Kumar Mendiratta, was hearing an appeal filed by Procure Logistics Services Pvt Ltd against the Axis Bank. In an order dated March 10, the commission said, "The bank clearly failed by repeatedly disallowing the complainant to deposit the notified cash into its own KYC-compliant account, despite multiple requests and persisted with this till the entire timeline lapses." It was alleged that the bank refused to accept the notes during the limited period allowed after the government announced demonetisation on November 8, 2016. The commission noted that nothing prevented the bank from accepting the cash and reportin

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The Congress on Saturday said the demonetisation announced on this day nine years ago was a "disastrous Tughlakian decision" that devastated the livelihoods of crores of Indians, besides crippling trade and micro, small and medium enterprises (MSMEs). Congress general secretary Jairam Ramesh said the Indian economy lost its momentum on account of the "Notebandi" and has never really recovered after that. "Today is the 9th anniversary of the singularly disastrous, Tughlakian decision relating to demonetisation. "The livelihoods of crores of Indians were devastated. Trade and MSMEs were crippled. The unorganised sector accounting for over 92 per cent of total employment was destroyed. The amount of black and counterfeit money didn't reduce. The slogan of cashless became meaningless. The 2,000 rupee note that was introduced has been withdrawn," Ramesh said in a post on X. "The Indian economy lost its momentum on account of Notebandi. It has never really recovered," he added. The Cong

Trinamool Congress leader Derek O'Brien on Saturday described the demonetisation in 2016 as the "biggest fraud on Indians", while sharing an excerpt from Prime Minister Narendra Modi's speech days after the note ban was announced. Sharing a post on X on the anniversary of the note ban, the Trinamool Congress Rajya Sabha leader also shared his own speech from Parliament post-demonetisation. "On this day, exactly nine years ago, the biggest fraud on Indians. Demonetisation. PM Narendra Modi outside Parliament versus us, inside Parliament," O'Brien said in a post on X. The video shared by the TMC MP showed an excerpt from Modi's speech post-demonetisation, where he sought 50 days to evaluate the impact of the decision. "If after December 30, there are shortcomings in my work or there are mistakes or a bad intention found in my work, I will be prepared for the punishment that the country decides for me," Modi said in the video. O'Brien also shared his own speech from the Rajya Sabha,

The Reserve Bank on Tuesday said 98.21 per cent of the Rs 2000 banknotes have been returned to the banking system, and only Rs 6,366 crore worth of such notes are still with the public. On May 19, 2023, the Reserve Bank of India (RBI) announced the withdrawal of Rs 2000 denomination banknotes from circulation. The total value of Rs 2000 banknotes in circulation, which was Rs 3.56 lakh crore at the close of business on May 19, 2023, has declined to Rs 6,366 crore at the close of business on March 31, 2025, RBI said. "Thus, 98.21 per cent of the Rs 2000 banknotes in circulation as on May 19, 2023, has since been returned," it said in a statement. The facility for deposit and/or exchange of the Rs 2000 banknotes was available at all bank branches till October 7, 2023. However, this facility is still available at the 19 issue offices of the Reserve Bank. Since October 9, 2023, RBI issue offices are also accepting Rs 2000 banknotes from individuals and entities for deposit into their

Microfinance has shown capability and resilience in every crisis: Demonetisation or Covid-19. Attention to the issues it faces can make the sector even more vibrant

From the 1991 economic crisis to his critique of demonetisation, former PM Manmohan Singh's legacy is marked by his quiet confidence, intellectual depth, and transformative vision for India

The Reserve Bank on Monday said 98.08 per cent of the Rs 2,000 banknotes have been returned to the banking system, and only Rs 6,839 crore worth such notes are still with the public. On May 19, 2023, the Reserve Bank of India (RBI) announced the withdrawal of Rs 2,000 denomination banknotes from circulation. The total value of Rs 2,000 banknotes in circulation, which was Rs 3.56 lakh crore at the close of business on May 19, 2023, has declined to Rs 6,839 crore at the close of business on November 29, 2024, RBI said. "Thus, 98.08 per cent of the Rs 2,000 banknotes in circulation as on May 19, 2023, has since been returned," it said in a statement. The facility for deposit and/or exchange of the Rs 2,000 banknotes was available at all bank branches till October 7, 2023. However, this facility is still available at the 19 issue offices of the Reserve Bank. From October 9, 2023, the RBI issue offices are also accepting Rs 2,000 banknotes from individuals and entities for deposit into

The demonetisation was intended to vanquish black money, reduce counterfeit currency, curb corruption, boost digital payments, and counter terrorism

Leader of Opposition in Lok Sabha Rahul Gandhi on Friday alleged that demonetisation has led to monopolies by devastating the MSMEs and informal sector and India continues to use more cash today than eight years ago. His attack came on the eighth anniversary of demonetisation. On November 8, 2016, Prime Minister Narendra Modi announced demonetisation in an address to the nation declaring that Rs 500 and Rs 1,000 notes would cease to be legal tender. One of the reasons cited by the government at that time was to promote the digital economy and reduce cash transactions to check corruption and black money. "India continues to use more cash today than 8 years ago when demonetisation was implemented. "DeMo paved the way for monopolies by devastating MSMEs and the informal sector," Gandhi said in a post on X. Incompetent and ill-intended policies that create an environment of fear for businesses will stifle India's economic potential, the former Congress chief said. "What is needed is

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The Reserve Bank of India on Tuesday said 98 per cent of the Rs 2,000 denomination notes have been returned since its May 2023 move to withdraw the currency notes. The total value of notes of the denomination has reduced to Rs 7,117 crore from the Rs 3.56 lakh crore on May 19, 2023, the central bank said. "98 per cent of the Rs 2000 banknotes in circulation as on May 19, 2023, has since been returned," the RBI said. On May 19, 2023, the RBI announced a surprise decision to withdraw the Rs 2,000 currency notes. The move was prompted on quality concerns and the denomination introduced after the demonetisation of November 2016 fulfilling its purpose. The central bank said Rs 2,000 notes continue to be legal tender and can be exchanged at 19 issue offices of the RBI either physically or sent by post for a credit into bank accounts.

The Congress on Friday claimed the counterfeit notes have become rife once again and termed as an "eyewash" the government's assertion that the overall number of counterfeit notes detected has fallen. The opposition party also claimed that counterfeiting has just moved rapidly to higher-value notes. Congress general secretary in-charge communications Jairam Ramesh asked what has the 2016 demonetisation achieved if neither black money nor counterfeiting has been curbed. "Eight years after the non-biological PM ground the economy to a halt through demonetisation, it appears that counterfeit notes have become rife once again - The number of counterfeit Rs 500 notes of the new series that have been detected has nearly quadrupled between 2018-19 and 2023-24. The number of fake Rs 2,000 notes has tripled since 2020-21, he claimed. "While the Government can claim that the overall number of counterfeit notes detected has fallen, this is an eyewash. Counterfeiting has just moved rapidly to

The Reserve Bank of India (RBI) on Monday said 97.87 per cent of the Rs 2000 denomination banknotes have returned to the banking system, and only Rs 7,581 crore worth of the withdrawn notes are still with the public. On May 19, 2023, the RBI announced the withdrawal of Rs 2000 denomination banknotes from circulation. The total value of Rs 2000 banknotes in circulation, which was Rs 3.56 lakh crore at the close of business on May 19, 2023, has declined to Rs 7,581 crore at the close of business on June 28, 2024. "Thus, 97.87 per cent of the Rs 2000 banknotes in circulation as on May 19, 2023, has since been returned," the central bank said in a statement. The facility for deposit and/or exchange of the Rs 2000 banknotes was available at all bank branches in the country till October 7, 2023. The facility for the exchange of the Rs 2000 banknotes has been available at the 19 issue offices of the Reserve Bank since May 19, 2023. From October 9, 2023, RBI issue offices are also accept