Free Press Journal

Demonetisation of 2016: India was not the only country, Venezuela did the same!

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Demonetisation India vs Venezuela

A year ago, on November 8, Prime Minister Narendra Modi announced the scrapping of Rs 500 and Rs 1,000 notes. The government declared the decision as a war against black money and corruption, and a push to promote digitalisation and non-cash payments. It’s been a year and even today the debate over demonetisation rages among country’s top bankers and economists. On December 12, a little more than a month later after Indian government announced demonetisation, Venezuela did the same by demonetising the 100-bolivar note from circulation. India’s Prime Minister Narendra Modi and Venezuela President Nicolas Maduro of Venezuela will be remembered for the campaigns that aimed that demonetising the larger denomination currencies. Here’s a quick comparison between demonetisation carried in India and Venezuela.

Demonetised notes
Both the countries demonetised their highest denomination currency
India: Rs 500 and Rs 1,000
Venezuela: 100-Bolivar note

Announcement
India: The move was announced with almost immediate effect with the notes valid for the next four hours but was valid at certain places like government hospitals. People were given 50 days to either use or deposit them in bank accounts.
Venezuela: It was announced on December 11 and gave people 72 hours to use the notes after which they have to deposit the currency within 10 days in the banks.


Also read: 5 countries that tried demonetisation and were successful

Motive
India: The aim of the move was to curb black money and to make India a digital and cashless economy.    
Venezuela: The aim was to tackle transnational gangs which hoard Venezuelan notes abroad.

Criticism
India: The opposition slammed the move as ‘organised loot’ and called it as bad planning and implementation.
Venezuela: The opposition criticised by saying 10 days are less and the move shows government’s ‘ineptitude’.

Death
India: Nearly 100 people died after the demonetisation was announced.
Venezuela: The Venezuelan Government reverted the decision of demonetisation after a citizen lost his life.