The_High_Denomination_Bank_Notes_(Demonetisation)_Act,_1978
The High Denomination Bank Notes (Demonetisation) Act, 1978
Act of the Indian Parliament
The High Denomination Bank Notes (Demonetisation) Act, 1978 was an act of the Indian Parliament that demonetized the high-denomination bank notes of ₹1000, ₹5000, and ₹10000. It was first introduced as the High Denomination Bank Notes (Demonetisation) Ordinance, 1978, by the then President of India Neelam Sanjiva Reddy.[3] The then Prime Minister of India, Morarji Desai of Janata Party, and Finance Minister Hirubhai M. Patel were considered key architects in the development and execution of the policy,[4] while RBI Governor Shri I. G. Patel was opposed to it.[5]: 128
As a result of this legislation, 93% of the total currency notes in circulation were exchanged, while the remaining went out of circulation or were not exchanged.[6]: 34 It was repealed by the Jan Vishwas (Amendment of Provisions) Act, 2023.[7]