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Demonetization: A step towards modified India
Published in
Volume: 2
Issue: 12
Pages: 2455 - 1627
The paper discusses about the move of demonetization taken by Central Government of India on 8 th November, 2016 with respect to its reasons and effects on different sectors in India. The sectors cover Micro Businesses, E-Wallet businesses, online retail stores and so on. The paper is based on secondary data collected from different newspapers and online sources, mentioned in references. Introduction Demonetization is the act of stripping a currency unit of its status as legal tender. It is a process of removing a currency from general usage or circulation of money in a country. Demonetization is an act where the old unit of currency gets retired and replaced with a new currency unit. It can also be considered as withdrawal of a specific currency from market. The birth of a paper currency in India Before we start with the discussion of demonetization which took place on 8 th November, 2016 we will look into history of birth of paper currency as how use of paper currency had been started in India. Until the 18th century, people in India used to use silver and gold coins to carry out their day to day transactions. But then some European companies established their own banks in the region to carry out their business transactions, like the Bank of Hindustan in Calcutta. They introduced the very first versions of Indian paper notes which then boosted the further popularised the use of paper notes. The Bank of Bengal went on to release notes that featured a small image of a female figure meant to represent the idea of " commerce, " as well as the bank's name and the denomination in three scripts: Urdu, Bengali and Nagri. However, it was only after the Paper Currency Act of 1861 that the British colonial government really got involved in producing money, establishing the paper currency as we know it today. Money was now to be issued by the state alone, not banks.
About the journal
JournalInternational Journal of Commerce and Management Research