What is demonetisation?

Question

Nowadays we are hearing a lot about demonetisation. India and Sweden are the first to promote demonetisation.  As we all know currency is withdrawn while on the implementation of demonetisation.
But my question is other than that what is the real advantages and aim of demonetisation? I need an expert answer.

Comments

Demonetisation is a policy of a government or central bank to withdraw a particular type of currency from circulation, making it invalid or worthless. It is usually done to combat illegal activities such as money laundering, corruption, tax evasion and counterfeiting. The aim is to reduce the amount of cash in circulation, encouraging people to use other forms of payment such as electronic banking, debit cards and credit cards. It can also be used to combat inflation and stimulate economic growth. Ultimately, demonetisation is a measure to promote a healthy and transparent financial system, which will benefit the entire economy.

Answer 1

Disrupting illicit activities: Demonetization can disrupt illegal activities that rely on cash transactions, such as counterfeiting, terrorist financing, and the circulation of counterfeit currency. The sudden withdrawal of specific currency notes makes it more difficult for criminals to use counterfeit money and forces them to find alternative means for their activities.

Answer 2

Demonetisation is a process by which a currency is withdrawn from circulation and replaced with a new one. The aim of demonetisation is to reduce the amount of cash in circulation, which can help to reduce corruption, money laundering, and the use of counterfeit money. It can also help to reduce the amount of tax evasion, as it makes it more difficult for people to hide their income. Additionally, it can help to increase the efficiency of the banking system by reducing the reliance on cash transactions.

Answer 3

Demonetisation is a process of cancelling the legal tender status of a currency unit in circulation. It is done for anticipating positive changes on the liquidity structure. It is done to counterbalance the current economic condition.

Answer 4

A demon, at normality, which is low somehow, is being incorrect. To very incorrect. A demon, at a lot of situation is a being that does the mal often or a lot. So what is it, it is to be incorrect or to do more mal.

Answer 5

Demonetization, also known as currency demonetization, refers to a governmental action in which a country's existing currency notes or coins are declared invalid as a legal tender, typically with the intention to combat issues such as corruption, black money, counterfeit currency, and illegal activities.