On January 16, 1978, the Janata Party-led government demonetized ₹1,000, ₹5,000, and ₹10,000 banknotes. Know the reason here. Published: September 29, 2024 8:23 AM IST By Edited by : Money—whether referred to as paisa, currency, or notes—is one of the most significant elements in a person’s life.
It can buy you things, bring you happiness, and provide a comfortable lifestyle. Indeed, it is often regarded as one of the most respected entities in the world. From fulfilling basic needs to enabling luxury experiences, money plays a crucial role in shaping our lives and aspirations.
But what if the government demonetise the note? Well, demonetisation can have significant impacts on individuals and the economy as a whole. The story will take back to 1978, i.e.
Independent India. On January 16, 1978, the Janata Party-led government demonetized ₹1,000, ₹5,000, and ₹10,000 banknotes to eliminate black money. During that time, these high-value notes were not commonly used by the general public; instead, they were primarily utilized for large transactions in trade or, more troublingly, in black-market activities.
The initiative, led by then Prime Minister Morarji Desai, aimed to combat financial malpractice and reduce the illegal use of large sums of money. However, the impact of this demonetization was relatively minimal. According to data from the Reserve Bank of India(RBI), the total amount of cash in circulation was ₹7,144 crore as of March 31, 1976.
Of this amou.