Prime Minister Narendra Modi’s sudden announcement to demonetise Rs 500 and Rs 1,000 notes in circulation, though welcomed by people across the country, has left many in the lurch. It was first implemented in 1946 when the Reserve Bank of India demonetised the then circulated Rs 1,000 and Rs 10,000 notes. In January 1978, the Indian government demonetised Rs 1,000, Rs 5,000 and Rs 10,000 notes which was quite substantial at that point of time. Under the law all “high denomination bank notes” ceased to be legal tender after January 16, 1978. People who possessed these notes were given till January 24 the same year — a week’s time — to exchange any high denomination bank notes.

Source: Indian Express November 14, 2016 03:27 UTC