Objectives of Demonetisation- ECONOMY

which of The following is objectives of Demonetisation

  1. Removing Black Money from the country.
  2. Stopping of Corruption.
  3. Stopping Terror Funds.
  4. Curbing Fake Notes
  1. (1)and (2)
  2. (2) and (3)
  3. (1), (2) (3) and (4)
  4. (3) and (4)

EXPLANATION

Demonetisation refers to the withdrawal of legal tender status of certain currency notes by the government. In India, the 2016 demonetisation of ₹500 and ₹1000 notes aimed to address several issues.

Objectives of Demonetisation:

  1. Removing Black Money from the country ✅

    • Black money refers to unaccounted income held in cash.

    • By demonetising high-denomination notes, people holding unaccounted cash were forced to deposit it in banks or lose it.

  2. Stopping Corruption ✅

    • Large-scale corruption often involves cash transactions.

    • Demonetisation aimed to reduce cash-based corruption by making old notes invalid.

  3. Stopping Terror Funds ✅

    • Terrorist activities are often funded through cash transactions.

    • Invalidating large cash notes disrupts the funding sources for terror activities.

  4. Curbing Fake Notes ✅

    • Fake currency circulation was a concern.

    • Withdrawing old notes and introducing new designs helps detect and reduce counterfeit currency.

🧾 Summary Table

Objective Included? Explanation
Removing Black Money ✅ Yes Forces disclosure of unaccounted cash
Stopping Corruption ✅ Yes Reduces cash-based corrupt transactions
Stopping Terror Funds ✅ Yes Disrupts funding channels of terrorism
Curbing Fake Notes ✅ Yes New notes with security features reduce counterfeiting

✅ Final Answer: (1), (2), (3) and (4)

Objectives of Demonetisation- ECONOMY