The High Denomination Bank Notes (Demonetisation) Act, 1978
Here’s a summary table for The High Denomination Bank Notes (Demonetisation) Act, 1978, along with an explanation of each part of the table:
| Aspect | Details |
|---|---|
| Act Name | The High Denomination Bank Notes (Demonetisation) Act, 1978 |
| Purpose | To demonetize ₹1000, ₹5000, and ₹10,000 notes to curb black money and counterfeit currency. |
| Date of Enactment | 16 May 1978 |
| Background | High-value notes were misused for illegal money hoarding and counterfeit currency circulation. |
| Key Provisions | - Withdrawal of legal tender status for ₹1000, ₹5000, and ₹10,000 notes.- Exchange allowed for limited time.- Powers to enforce demonetisation. |
| Duration | Limited period for exchange and deposit; extensions possible if necessary. |
| Impact | - Reduced black money circulation.- Controlled counterfeit currency.- Increased transparency. |
| Significance | First major demonetisation in India aimed at financial reform and curbing illegal money. |
Explanation of Table Columns:
Act Name:
The official title of the legislation.
Purpose:
The main reason why the Act was introduced—here, to demonetize high-value currency notes to fight illegal money and fake currency.
Date of Enactment:
When the Act was officially passed and came into force.
Background:
The situation that led to the creation of the Act — misuse of large denomination notes.
Key Provisions:
The important legal rules and steps the Act includes, like withdrawing notes and providing a window for exchange.
Duration:
Specifies how long the demonetisation and exchange window lasts.
Impact:
Effects on the economy and society, such as reducing black money and counterfeit currency.
Significance:
The broader importance or legacy of the Act in India’s financial history.
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