On 8th November 2016, Indian Prime Minister Narendra Modi called a press conference and announced, with only a few hours notice, that the 500 and 1,000-rupee notes were no longer legal tender. The confusion, chaos, and fear that followed was of epic proportions. Queues formed at banks, with people waiting for days, only to find the bank ran out of smaller bills. Those without bank accounts had no way to make routine transactions. Already impoverished people had to spend their work time waiting to exchange their money. India was truly living a historical moment with many theories around the real motive, timing and preparedness behind this decision. Two years later, one of India s highly respected banker, Meera Sanyal analyses this policy with unprecedented data, historical and cultural insights and personal narratives of common people and policy makers. And in the process, explains how Demonetization knocked India out.

Contents

Introduction

1.Surgical Strike
2.The Role of the RBI
3.Lessons from History
4.The Human Impact
5.The Economic Shock
6.Demonetization Report Card

Conclusion

Appendix 1 : Text of Demonetization
Announcement by Prime Minister
Narendra Modi, 8 November 2016
Appendix 2 : SBI Ecowrap, 7 April 2016
Appendix 3 : RBI Circulars on Specified Bank Notes (SBNs)
Appendix 4: 120 Due to Demonetization

Notes
Index
Acknowledgements
About the Author