Withdrawal of high-denomination notes is a radical measure the government normally resorts to in an attempt to counter forgery. Withdrawal of high-denomination rupee notes is a radical measure the government normally resorts to in an attempt to counter forgery. In 1954, Rs1,000, Rs5,000 and Rs10,000 notes were reintroduced and were again demonetized in January 1978. In the early 1970s, the Wanchoo committee on black money had recommended withdrawing certain banknotes. On reaching the capital, Raman was told that the government had decided to withdraw high-denomination notes and asked to draft the necessary ordinance within a day.

Source: Mint November 08, 2016 18:10 UTC