The term demonetisation has become a household name since the government pulled the old Rs 500 and Rs 1,000 notes out of circulation. While as per dictionary demonetisation means "ending something (e.g. What is demonetisation?When a currency note of a particular denomination ceases to be a legal tender it is termed as demonetisation. But since our government is replacing the old Rs 500 notes with newer ones and doing away with the Rs 1,000 notes, it would be more appropriate to call the move as `scrapping' or `phasing out' of certain curren cy notes.2. Also, since there is a shortage of newly printed Rs 500 and Rs 2,000 notes, the situation has worsened.

Source: Economic Times November 29, 2016 03:30 UTC