# Modi announces demonetisation of ₹500 and ₹1,000 notes

Date: 2016

## The fact

On 8 November 2016 Prime Minister [Narendra Modi](/people/narendra-modi) announced in a televised address that ₹500 and ₹1,000 banknotes would cease to be legal tender from midnight, with a limited exchange window.

## Context

The Reserve Bank implemented. The Finance Ministry wrote later ordinances. Cash-intensive informal workers met a demand shock. He did not sit as every bank teller.

GST in 2017 is a neighbouring later tax instrument. Jan Dhan accounts are a neighbouring earlier inclusion file.

The Prime Minister of India is head of the Union Council of Ministers. Parliament writes statutes; the President assents; states and Union ministries implement; the Supreme Court can strike a scheme down. A prime minister can announce demonetisation, drive a bill, and take an oath. He does not write a UNFCCC depositary record, an ISRO telemetry file, or a Supreme Court judgment by himself.

## Evidence and sources

Prime Minister’s Office of India carries the official instrument or communique. Reuters records the same dated act independently.

## Significance

The path is [household purchasing power](/drivers/household-purchasing-power) and inflationary disruption: a completed overnight invalidation of most cash in circulation is a dated demand-and-liquidity shock.

## What is established and what is not

Established: an 8 November 2016 prime-ministerial announcement withdrawing ₹500 and ₹1,000 notes from midnight, recorded by the PMO and by independent wires.

Not established: a unique later GDP coefficient from that night, or that every later tax receipt was caused by this speech.

What would change the picture: a contradictory original with a different date or name, a later repeal, a court that vacated the instrument, or a measured series that can be argued, with lag and alternatives, as a consequence of this instrument rather than of later institutions.

The date is the date of this instrument, not a licence to back-date every later harm or benefit.

The RBI implemented. Banks exchanged notes.. A later repeal, court stay, or successor order would be a different Fact with a different date. That pair identifies Modi announces demonetisation of ₹500 and ₹1,000 notes, not a later speech about Modi announces demonetisation of ₹500 and ₹1,000 notes.

Co-authors and later implementers named in Context remain on the file. Modi announces demonetisation of ₹500 and ₹1,000 notes on 2016-11-08 is not a licence to treat every later Prime Minister’s Office of India communique as this same act. If a later repeal, stay, or successor decree exists, it needs its own date and its own row. This dossier refuses to average Modi announces demonetisation of ₹500 and ₹1,000 notes into a personality. The contribution described on this Person row is limited to He announced and politically owned the decision. The RBI implemented. Banks exchanged notes. That limit is the alternative to treating office-holding as authorship of every later series. The Lok Sabha, Rajya Sabha, the President, the Reserve Bank, state governments, the Election Commission, and foreign counterparties share specific files. Allegation is not a completed judgment. A Supreme Court striking-down is not a criminal conviction. A scheme notification is not a unique rupee coefficient. A UN pledge is not a delivered emissions path.

## People

- Narendra Modi: https://factrail.ai/people/narendra-modi

## Drivers

- Household Purchasing Power: https://factrail.ai/drivers/household-purchasing-power
- Labour-Market Tightness: https://factrail.ai/drivers/labour-market-tightness

## Sources

- https://www.reuters.com/article/us-india-modi-corruption-idUSKBN1330HL
- https://www.pmindia.gov.in/en/news_updates/pm-addresses-the-nation/

## Methodology

https://factrail.ai/methodology

Canonical: https://factrail.ai/facts/in-demonetisation-2016