The act of stripping a currency unit of its status as a legal tender of a country is called  Demonetization. It has been used as a tool to steady the currency and fight inflation for a smooth flow of economy and trade. This is a way to replace the old money with new currency and keep a check on black and grey markets.The Indian government in 2016 decided to demonetize the 500 and 1000 rupee notes. Without warning, Prime Minister Narendra Modi announced the two prominent denominations of a currency system to be stopped and exchange them for newly introduced 2000 rupee and 500 rupee bills.