On 8 November 2016, the Government of India announced the demonetisation of all Rs 500 and Rs 1,000 banknotes, which formed around 86 per cent of the total currency in circulation. This was done with an aim to curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism.

This move was a grand failure as it led to around 100 deaths, unemployment of over 1.5 millions people, and loss of GDP by around 2 per cent.