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Yes, India has a history to pull select denominations of its currency from being circulated in the past also. At those three times, most Indian currency had been demonetised. Those three instances of Demonetisation of Indian currency were:

(i) On 12 Jan, 1946: All the notes of denominations of Rs.500 and Rs.1000 were demonetised. At that time, the time-limit of 10 days was given to exchange the demonetised notes. This step was taken to catch tax evaders.

(ii) On 16 Jan, 1978: All the notes of denominations of Rs.1000, Rs.5000 and Rs.10000 were demonetised. The time-limit of 3 days was given to exchange the demonetised notes. This step was taken to catch corrupt leaders and officials of the preceding governments.

(iii) On 08 Nov, 2016: All the notes of denominations of Rs.500 and Rs.1000 were demonetised. This time, the time limit of 50 days was given to exchange demonetised notes from banks and some essential service stores like hospitals and petrol pumps and so on.

Demonetisation is the process of detaching a currency unit from its status as legal tender in the country. This process results in total or partial change in the existing national currency where the present currency unit in circulation is pulled off and new currency unit is circulated.

The various purposes served by Demonetisation of currency include:

(i) It helps to combat corruption, crime, inflation, counterfeit currency and tax evasion

(ii) It encourages cashless economy

(iii) It sometimes facilitate trade also

The Partial Demonetisation of Indian currency took place in Nov 2016. On the 8th day of November, a live public announcement was made by the Prime Minister of India, Mr. Narendra Modi at 8.00 pm that the Rs.500 and Rs.1000 denomination notes were demonetised and can only be used till 12 midnight the same day. The new series of Rs.500 and Rs.2000 notes were introduced and the time limit of 50 days was given for the exchange of the demonetised notes. During this time, some limits were put on exchange of demonetised notes per day and withdrawal per day (and week). The opposition strongly criticized the step of Demonetisation whereas there were mixed reactions among the people of India. It was appreciated by the people on one hand but also faced criticism by some.

Rs.500 and Rs.1000 denomination currency notes were demonetised on Nov 8, 2016.

The following are the instances of Demonetisation of currency outside India:

(i) In 1873, USA - silver coins, demonetised

(ii) In 2002, Europe - German Marc, French Franc, and Italian Lira demonetised.

(iii) In 2015, Zimbabwe - Zimbabwean Dollar demonetised

(i) Estimated curb on black money

(ii) Estimated curb on Human Trafficking

(iii) Adverse effects on radical groups like Naxalists and Maoists.

(iv) Cash shortage among public

(v) Deaths of people standing in bank queues reported.

(vi) Decline in stock market

(vii) Disruption in public transport system.

(viii) Rise in cashless transactions

(ix) Move towards digital economy

(x) Growth in tax collection and number of assesses

(xi) Decline in GDP growth.

At the end of year 1993, the European Union of various European countries was formed. It removed the trading barriers among the united countries to facilitate trading among European countries. But the traders were feeling difficult to trade due to the difference in the currency types of different European countries. As a result, in the year 2002, European Union issued a new currency unit, named Euro, to be applicable all over the European Union countries. So, the currency units like German Marc, French Franc, and Italian Lira were demonetised in favour of Euro issued, to facilitate trade.

(i) In1873, USA silver coins were demonetised resulting in 5 years of economic depression. As a result, silver was remonetised in 1878.

(ii) ln2002, Europe German Marc, French Franc, arid Italian Lira demonetised in favour of Euro issued by European Union to facilitate trade.

(iii) In 2015, Zimbabwe Zimbabwean Dollar demonetised in favour of US Dollar, Botswana Pula and South African Rand.

In 2015, the Zimbabwean Dollar was replaced by US Dollar Botswana Pula and South African Rand currencies.

The two types of Demonetisation of currency are Total Demonetisation and Partial Demonetisation.

(i) Total Demonetisation: In this type of Demonetisation, the entire range of present currency units are replaced by a complete new range of currency units.

(ii) Partial Demonetisation: In this type of Demonetisation, only some or part of currency units (only partial and not complete) are replaced by new currency units and rest other currency units are continued for the circulation.

The three instances of Demonetisation of Indian currency are:

(i) On 12 Jan, 1946: All the notes of denominations of Rs.500 and Rs.1000 were demonetised. At that time, the time-limit of 10 days was given to exchange the demonetised notes. This step was taken to catch tax evaders.

(ii) On 16 Jan, 1978: All the notes of denominations of Rs.1000, Rs.5000 and Rs.10000 were demonetised. The time-limit of 3 days was given to exchange the demonetised notes. This step was taken to catch corrupt leaders and officials of the preceding governments.

(iii) On 08 Nov, 2016: All the notes of denominations of Rs.500 and Rs.1000 were demonetised. This time, the time limit of 50 days was given to exchange demonetised notes from banks and some essential service stores like hospitals and petrol pumps and so on.

Rs.500 (new series) and Rs.2000 notes were introduced on Nov 8, 2016.

The following methods of evasion were adopted by black money holders in Demonetisation move of 2016:

(i) purchasing of gold

(ii) donations given at temples

(iii) initial booking and subsequent cancellation of railway tickets

(iv) Multiple bank transactions at different branches

(v) Backdating of accounting records and entries

Total Demonetisation and Partial Demonetisation.

Demonetisation is the process of detaching a currency unit from its status as legal tender in the country.

The following are the reasons for Demonetisation:

(i) Combating corruption

(ii) Combating crime

(iii) Combating inflation

(iv) Combating counterfeit currency

(v) Combating tax evasion

(vi) Encourage cashless economy

(vii) facilitate trade (sometimes).