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The High Denomination Bank Notes (Demonetisation) Act, 1978

The High Denomination Bank Notes (Demonetisation) Act, 1978
Parliament of India
  • An Act to provide in the public interest for the demonetisation of certain high denomination bank notes and for matters connected therewith or incidental thereto
CitationAct XI of 1978[1]
Territorial extentIndia
Passed byLok Sabha
Passed16 January 1978
Enacted byRajya Sabha
Legislative history
First chamber: Lok Sabha
Bill titleNumber 20 of 1978
Amended by
High Denomination Bank Notes (Demonetisation) Amendment Act, 1998
Related legislation
  • Bank Notes (Declaration of Holdings) Ordinance, 1946
  • High Denomination Bank Notes (Demonetisation) Ordinance, 1946
[2]: 5 
Status: Repealed

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notes in circulation were exchanged, while the remaining went out of circulation or were not exchanged.[6]: 34  It was repealed by the Jan Vishwas (Amendment of Provisions) Act, 2023.[7]

  1. ^ "The High Denomination Bank Notes (Demonetisation) Act, 1978" (PDF). indiacode.nic.in. Department of Legislative Affairs, Ministry of Law and Justice, Government of India. Retrieved 3 November 2022.
  2. ^ "Report of the Central Board of Directors for the Year Ended 30th June 1946" (PDF). rbidocs.rbi.org.in. RBI. 5 August 1946. Retrieved 14 December 2023.
  3. ^ "Neelam Sanjiva Reddy, issued an Ordinance to demonetisation, in 1978". Indian Express. 15 November 2016.
  4. ^ "Key people in 1978 demonetisation". India Today. 23 November 2016.
  5. ^ Gavai, BR (2 January 2023). "Vivek Narayan Sharma v. Union of India (Majority Judgement)" (PDF). main.sci.gov.in. Supreme Court of India. Retrieved 25 December 2023.
  6. ^ Nagarathna, BV (2 January 2023). "Vivek Narayan Sharma v. Union of India (Dissenting Judgement)" (PDF). scobserver.in. Supreme Court of India. Retrieved 25 December 2023.
  7. ^ "Jan Vishwas (Amendment of Provisions) Act, 2023" (PDF). egazette.gov.in. Ministry of Law and Justice, Government of India. 11 August 2023. p. 29. Retrieved 25 December 2023.

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