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Well this is not the first time that the currency is demonetised in India, India has faced such situation twice before as follows,
In January 1946 Rs 500, Rs 1000 and Rs 10,000 notes were demonetised
At that time as per Indian express report Old currency notes were sold for around 60 to 70% of their value.
In January 1978 again Rs 500, Rs 1000 and Rs 10,000 notes were demonetised leading a panic situation among citizens. The move was said to curb the black marketing and hoarding of black money