What Is Demonetization?Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change in national currency. The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins. Sometimes, a country completely replaces the old currency with a new currency.KEY TAKEAWAYSDemonetization is a drastic intervention into the economy that involves removing the legal tender status of a currenc...