Demonetisation Done In The Past Too

Prime Minister Narendra Modi on Tuesday sprang forth a surprise when he announced the demonetisation of the currency notes of the denominations of Rs 500 and Rs 1000. According to RBI, there are 16.5 billion units of Rs 500 notes in circulation, while the number for Rs 1,000 notes was 6.7 billion. these notes will not be legal tender anymore.

Government's move to withdraw currency notes of Rs 500 and Rs 1,000 denomination is being seen as its boldest step and a surgical strike on black money.

However, this is not the first time that the high denomination currency has been demonetised. Here are the previous occasions when the Government took the drastic decision:

* The first ever demonetisation happened in January 1946. The RBI demonetised Rs 1000 and Rs 10000.

* In 1954, the Government has reintroduced bank notes of Rs 1000, Rs 5000 and Rs 10000.

* After Janata Government came to power, bank notes of Rs 1000, Rs 5000 and Rs 10000 were demonetised in January 1978.