Business owners in India have faced a problem with the detection of fake currencies. Another problem is that the holders of fake currencies could be genuine people who innocently hold such money.
2014-15 saw India record a rise in the use of fake currencies. Counterfeit money in India is mainly used to fund several illegal activities such as terrorism.
The process of demonetization is an attempt at solving the problem of fake currency.
It should be noted that the demonetization process is a banking process. In other words, people would be forced to use the banks to deposit the old notes. This is a strategic way of getting rid of fake money as the transactions take place in the bank which have machines of detecting fake currency.
Conclusion: Post demonetization in November 16, the Indian government will monitor the release of the new currencies and make sure that only the legal currencies are in circulation. Overall, demonetization is aimed at playing a critical role in getting rid of fake currency.
Laura Kennedy.
Edited.