It is important to note that demonetisation refers to the removal of flow of currency from circulation which is done in order to trap black market currency and unaccounted money. So far demonetisation takes place twice.
1. First Demonetisation: It was done in 1946 which called for announcement of notes of Rs. 100 and above. All notes of Rupees denomination and above were demonetised.
2. Second Demonetisation: It was done in January, 1978 through which Currency notes of higher denominations of Rs. 1000, Rs. 5000 and Rs. 10000 were demonetised.
