Complete List of Demonetisation Date in India

In 2016, the Indian Government demonetised Rs.500 and Rs.1,000 notes, creating havoc in the entire country. It was a joint decision of the authorities along with the Reserve Bank of India (RBI) in order to fight corruption, black marketing and other financial crimes.

Now, in 2023, the RBI declared its latest demonetisation measure, which is removing the Rs.2,000 note from circulation. Well, this is not the second time, but the 5^th time in the country’s history that the Central Bank has taken such a measure. 

If you wish to know all the demonetisation dates in India, along with their reasons, keep reading this article. 

Demonetisation Dates In India – 1946 to 2023 

Find all the demonetisation dates in India mentioned below:

1. 1946: Demonetisation of Rs.500, Rs.1,000 and Rs.10,000 Notes

On 12^th January 1946, the British Government and the RBI Governor of that time, Chintaman Dwarakanath Deshmukh, decided to demonetise the Rs.500, Rs.1,000 and Rs.10,000 notes. Its main aim was to curb the increasing black-market operations, which was a result of WW2. 

At that time, several countries, like France, the UK, Belgium, etc., had taken such measures, influencing India to follow suit. The RBI implemented this decision by issuing two ordinances. However, in 1954, the Central Bank reintroduced all three denominations. 

2. 1978: Demonetisation of Rs.1,000, Rs.5,000 and Rs.10,000 Notes

In 1970, the Indian Government set up a direct tax inquiry panel called the Wanchoo Committee to trace and prevent the spread of black money. It was led by Kailash Wanchoo, the former Chief Justice of India. 

After a few years, the PM Morarji Desai government issued orders for demonetisation of Rs.1,000, Rs.5,000 and Rs.10,000 notes. It came into effect on 16^th January 1978 under the 1978 High Denomination Bank Notes (Demonetization) Ordinance. 

As per the Finance Minister of that time, HM Patel, this measure would help combat anti-social elements and control illegal transactions. Later, in November 2000, the Rs.1,000 note was reintroduced into circulation by the Atal Bihari Vajpayee Government.   

3. 2014: Withdrawal of All Notes Issued Before 2005

On 22^nd January 2014, RBI declared that all notes issued before 2005 would be withdrawn from circulation. Individuals would be able to exchange such notes at banks from 1^st April 2014, and this service shall remain open until further communication. 

To help people identify such notes, the Reserve Bank said those denominations did not have the year of printing on their reverse sides. The authorities took this measure as notes before 2005 had very few security measures compared to those issued after that year. 

4. 2016: Demonetisation of Rs.500 and Rs.1,000 Notes   

8^th November 2016 is probably the most remembered demonetisation date in India. Prime Minister Narendra Modi had declared in a television broadcast that Rs.500 and Rs.1,000 notes would cease to be legal tender. 

He also announced the issuance of the new Rs.500 and Rs.2,000 banknotes. As per sources, this move would help curb black money and stop counterfeit and illicit cash being used for funding terrorist activities. 

5. 2023: Withdrawal of Rs.2,000 Notes from Circulation

On 19^th May 2023, RBI declared the withdrawal of Rs.2,000 notes as a part of its ‘clean note’ policy. People had time till 30^th September 2023 to exchange such notes at banks or designated RBI offices. 

However, Rs.2,000 notes will remain as a legal tender even after that date.   

Conclusion

Till now, these are all the demonetisation dates in India that you should know about. Given RBI’s drive to curb illicit financial activities, it may take such measures in future, too. However, they are for the greater good of the people and the economy as a whole.

Thus, under such circumstances, you should follow the rules prescribed by the authorities and encourage others to do the same.