1. Explain in details the Demonetization …

Features of Demonetization are:

1. Measure of tax administration- black money holders had to declare the unaccounted wealth and pay taxes at penalty rates

2. Measure to avoid tax evasion- indicating the government will not tolerate tax evasion 

3. Measure of channelizing savings into the financial system- by depositing money in banks

4. Create ‘cash-less’ or ‘cash-lite’ economy- for increasing financial savings and reducing tax evasion

In simple words, means that Reserve Bank of India has withdrawn the old Rs 500 and Rs 1000 notes as an official mode of payment. Demonetization 2016 is the act of Banning /taking back of a currency unit of its status as legal tender. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.
 

 Reason for Demonetisation 2016

1. To tackle black money in the economy.
2. To lower the cash circulation in the country which “is directly related to corruption in our country,” according to PM Modi.
3. To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism in India.
4. The move is estimated to scoop out more than more than Rs 5 lakh crore black money from the economy, according to Baba Ramdev, a staunch Modi supporter.