Treasury Department spokeswoman Dawn Selak reported in an announcement late Tuesday which the cash payments had been vital due to the “effectiveness of U.S. and Global sanctions,” which isolated Iran in the Global finance system.
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While facts introduced by RBI in Nov 2021 showed that cash circulation in India has truly greater noticeably considering the fact that demonetization and demonetization has not necessarily converted cash users to electronic consumers.[271]
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A jewellery shop inside of a shopping center with a recognize "We settle for ₹500 and ₹one,000 notes", even once they were no longer valid banknotes. There have been reports of people circumventing the restrictions imposed on exchange transactions by conducting numerous transactions at various bank branches, and by sending hired people, workers, and followers in teams to Trade substantial amounts of demonetised banknotes at banking institutions.
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Demonetisation resulted within the relative erosion of agricultural wages and weak bargaining ability of farmers for their make.[141]
The federal government claimed that the principle goal with the exercise was curbing black money, which integrated revenue which had not been noted and thus was untaxed; cash acquired by means of corruption, illegal goods sales and unlawful things to do which include human trafficking; and copyright forex.
Other stated targets involved increasing the tax foundation and raising the amount of taxpayers; decreasing the volume of transactions completed by cash; decreasing the funds available to terrorists and radical teams such as the Naxalite Maoists; and integrating the official and informal economies.[fifty eight][59][sixty]
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The announcement of demonetisation was followed by extended cash shortages in the months that adopted, which established sizeable disruption throughout the economic climate.
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