What Is Demonetization?

Demonetization is the process of removing a monetary unit’s legal tender status. It occurs anytime the national currency is changed. The existing form or forms of money are removed from circulation and replaced with new notes or coins. Occasionally, a country will entirely replace its old currency with a new one.
Demonetization has been used to help stable currencies and combat inflation, as well as to improve trade and market access, and to move informal economic activities into the open and away from black and grey markets.

Demonetization is the process of devaluing a piece of currency to zero. In other words, changing the value of a particular denomination of currency to nil. Making it a piece of paper with absolutely no value greater than a regular piece of paper.

Demonetisation is nothing but a government is calling a legal tender invalid mostly governments legal tenders are the currencies .India 500rs and 1000rs notes ,which made up to 86% ( Of which 500rs notes made upto 46 % and 1000rs notes made up to 40%) of the money supply in India at that time were called invalid from 12 am of Nov 9th 2016 by our Prime minister Mr.Modi.