The high denomination Bank notes ( Demonetisation ) Act, 1978 - Wikipedia The high denomination Bank notes ( Demonetisation ) Act, 1978 The High Denomination Bank Notes ( Demonetisation ) Act, 1978 Parliament of India An Act for demonetisation of high denomination Indian bank notes, for improving Economy of India, and regulating illegal financial transactions, with higher denomination bank notes. Citation % 201978. pdf The High Denomination Bank Notes ( Demonetisation ) Act 11, 1978 Territorial extent India Enacted by Lok Sabha Date passed 16 January 1978 Enacted by Rajya Sabha Legislative history Bill introduced in the Lok Sabha Number 20 of 1978 Amends High Denomination Bank Notes ( Demonetisation ) Amendment Act, 1998 Related legislation Ministry of Law Status : In force The High Denomination Bank Notes ( Demonetisation ) Act, 1978, of India is a law passed in the Indian Parliament, ceasing the usage of high - denomination bank notes of ₹ 1000, ₹ 5000, and ₹ 10000. On 16 January 1978, the then President of India Neelam Sanjiva Reddy introduced the High Denomination Bank Notes ( Demonetisation ), Ordinance 1978. The then Prime Minister India, Morarji Desai of Janata Party, Finance Minister Hirubhai M. Patel, and Reserve Bank of India Governor I.G. Patel, are considered the key architects in the development and execution of the policy. Contents 1 Preamble to the Demonetisation Act 1978 2 Opposition 3 Passage in the Parliament 4 Details 5 Amendment 5.1 1998 6 Related ordinance 7 Aftermath 8 See also 9 References Preamble to the Demonetisation Act 1978 The Preamble to the Demonetisation Act 1978 highlights the need for demonetisation of high denominations, in the public interest. The usage of high - denomination bank notes was considered detrimental to Economy of India, due to illegal financial transactions facilitated by high - denomination bank notes. Opposition The Constitutional validity of 1978 Act of Demonetisation was challenged in the Supreme Court of India, on the claimed grounds that it violated the then Fundamental Right of property. The Constitutional bench of the Supreme Court of India rejected the petitioners ' plea, and upheld the Constitutional validity of Demonetisation Act, 1978. Passage in the Parliament The Act was passed by consideration in both Houses of Parliament and supreme court, and was implemented by an issue of an ordinance on 16 January 1978, which was later made an Act, from 30 March 1978. Details The Demonetisation Act of 1978 has fifteen sections. Section 2 details the usage of words Bank notes in Act Amendment 1998 Section 2 of the Act was amended in the winter session of Indian Parliament in 1998. Following a discussion in the 1998 winter session of Indian Parliament, the bill was introduced, by the then Finance minister Yashwant Sinha to reintroduce ₹ 1000 banknotes, due to claims of shortage of high - denomination notes and increasing pressure on lower denominations. Related Ordinance The draft of the 1978 Demonetisation Ordinance was prepared by referring to the Demonetisation Ordinance of 1946. On 12 January 1946, High Denomination Bank Notes ( Demonetisation ) Ordinance 1946 was passed by the then Governor General of India, Field Marshal Archibald Wavell, 1st Earl Wavell ceasing ₹ 500, ₹ 1000, and ₹ 10000 to be legal tender. Aftermath The chief economic advisor of the State Bank of India affirmed that 25 % of the proscribed currency notes did not return to the banking system during the 1978 demonetisation episode. See also 2016 Indian banknote demonetisation List of Acts of the Parliament of India References Jump up ^ `` Neelam Sanjiva Reddy, issued an Ordinance to demonetisation, in 1978 ''. Indian Express. 15 November 2016. Jump up ^ `` Key people in 1978 demonetisation ''. India Today. 23 November 2016. Jump up ^ `` Preamble of 1978 Act, defined ''. The Times of India. 11 November 2016. Jump up ^ `` Supreme Court Upheld Constitutional validity, of 1978 Act ''. First Post. 25 November 2016. Jump up ^ `` Supreme Court verdict on 1978 demonetisation ''. The Times of India. 12 November 2016. Jump up ^ % 201978. pdf `` The High Denomination Bank Notes ( Demonetisation ) Act, 1978 '' Check url = value ( help ) ( PDF ). lawmin.nic.in. Jump up ^ % 201978. pdf `` The High Denomination Bank Notes ( Demonetisation ) Act, 1978 '' Check url = value ( help ) ( PDF ). lawmin.nic.in. Jump up ^ `` Definition of Bank notes in Act ''. The Hindu. 14 November 2016. Jump up ^ `` Reintroduction of 1000 rupees in 1998 ''. DNA India. 18 November 2016. Jump up ^ `` 1978 Demonetisation in India ''. Deccan Herald. 9 November 2016. Jump up ^ `` Yaswant Sinha, reintroduced 1000 rupee notes, in 1998 ''. Indian Express. 16 November 2016. Jump up ^ Only 75 % of demonetised currency returned to the central bank in 1978 Indian legislation Constitution of India ( amendments ) Indian Penal Code Code of Criminal Procedure, 1973 Acts of the Parliament Ordinance In Force Consumer Real Estate ( Regulation and Development ) Act, 2016 Consumer Protection Act, 1986 Essential Commodities Act Essential Services Maintenance Act Corruption Benami Transactions ( Prohibition ) Act, 1988 Black Money ( Undisclosed Foreign Income and Assets ) and Imposition of Tax Act, 2015 Prevention of Corruption Act, 1988 The Lokpal and Lokayuktas Act, 2013 Mines and Minerals ( Development and Regulation ) Act, 1957 Prevention of Money Laundering Act, 2002 Whistle Blowers Protection Act, 2011 Criminal Armed Forces ( Special Powers ) Act Armed Forces Tribunal Act, 2007 Arms Act, 1959 Army Act, 1950 Criminal Law ( Amendment ) Act, 2013 Cigarettes and Other Tobacco Products Act Indian Evidence Act Juvenile Justice ( Care and Protection of Children ) Act, 2015 National Security Act ( India ) Protection of Women from Domestic Violence Act, 2005 Scheduled Caste and Scheduled Tribe ( Prevention of Atrocities ) Act, 1989 Education Indian Institutes of Management Act, 2017 Institutes of Technology Act, 1961 National Institutes of Technology Act, 2007 Right of Children to Free and Compulsory Education Act, 2009 University Grants Commission Act, 1956 Environment Air ( Prevention and Control of Pollution ) Act Biological Diversity Act, 2002 CAMPA bill Environment Protection Act, 1986 Indian Forest Act, 1927 National Green Tribunal Act Prevention of Cruelty to Animals Act Protection of Plant Varieties and Farmers ' Rights Act, 2001 Wildlife Protection Act, 1972 Financial Aadhaar ( Targeted Delivery of Financial and other Subsidies, benefits and services ) Act, 2016 Banking Regulation Act, 1949 Conservation of Foreign Exchange and Prevention of Smuggling Activities Act Depositories Act The Electricity Act, 2003 Expenditure Tax Act, 1987 Finance Act ( India ) Fiscal Responsibility and Budget Management Act, 2003 Foreign Contribution ( Regulation ) Act, 2010 Foreign Exchange Management Act Geographical Indications of Goods ( Registration and Protection ) Act, 1999 Government Securities Act, 2006 Indian Contract Act, 1872 Indian Stamp Act, 1899 Insolvency and Bankruptcy Code, 2016 Insurance Act, 1938 Negotiable Instruments Act, 1881 Securities Laws ( Amendment ) Act, 2014 Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 The Competition Act, 2002 The High Denomination Bank Notes ( Demonetisation ) Act, 1978 The Income - tax Act, 1961 Transfer of Property Act 1882 Urban Land ( Ceiling and Regulation ) Act, 1976 Healthcare Central Council of Homoeopathy Act, 1973 Clinical Establishments ( Registration and Regulation ) Act, 2010 Dentist Act Drugs and Cosmetics Act, 1940 Drugs and Magic Remedies ( Objectionable Advertisements ) Act, 1954 Indian Medical Council Act Mental Health Act, 1987 Narcotic Drugs and Psychotropic Substances Act, 1985 Mental Health Care Act, 2017 Labour Bonded Labor System ( Abolition ) Act, 1976 Factories Act, 1948, India Industrial Disputes Act, 1947 Interstate Migrant Workmen Act 1979 Maternity Benefit ( Amendment ) Act, 2017 Minimum Wages Act 1948 National Rural Employment Guarantee Act, 2005 Sexual Harassment of Women at Workplace ( Prevention, Prohibition and Redressal ) Act, 2013 Unorganised Workers ' Social Security Act 2008 Personal Hindu Adoptions and Maintenance Act ( 1956 ) Majority Act ( India ) Hindu Minority and Guardianship Act Hindu Succession Act, 1956 Special Marriage Act, 1954 The Hindu Marriage Act, 1955 The Indian Christian Marriage Act, 1872 The Muslim Women ( Protection of Rights on Divorce ) Act 1986 Social Rights of Persons with Disabilities Act, 2016 Child Labour ( Prohibition and Regulation ) Act Indecent Representation of Women ( Prohibition ) Act National Food Security Act, 2013 Pre-Conception and Pre-Natal Diagnostic Techniques Act, 1994 The Prohibition of Child Marriage Act, 2006 The Scheduled Tribes and Other Traditional Forest Dwellers ( Recognition of Forest Rights ) Act, 2006 Street Vendors Act, 2014 State Laws Anti-Superstition and Black Magic Act The Bombay Prohibition Act, 1949 Bombay Prohibition ( Gujarat Amendment ) 2009 Chhattisgarh Food Security Act, 2012 Maharashtra Control of Organised Crime Act The Gujarat Local Authorities Laws ( Amendment ) Bill, 2009 Puducherry Prevention of Anti-Social Activities Act State Reorganisation Andhra Pradesh Reorganisation Act, 2014 Bihar Reorganisation Act, 2000 Madhya Pradesh Reorganisation Act, 2000 Punjab Reorganisation Act, 1966 States Reorganisation Act, 1956 Uttar Pradesh Reorganisation Act, 2000 Terrorism Unlawful Activities ( Prevention ) Act Transport Aircraft Act Motor Vehicles Act, 1988 National Waterways Act, 2016 Inland Vessels Act Metro Railways Act, 1978 Metro Railway Act, 2002 Organisation / Body Chartered Accountants Act, 1949 Companies Act 2013 Gram Nyayalayas Act, 2008 Indian Trusts Act, 1882 Panchayats ( Extension to Scheduled Areas ) Act 1996 Reserve Bank of India Act, 1934 The Indian Partnership Act, 1932 Societies Registration Act, 1860 The Limited Liability Partnership Act, 2008 Repeal Repealing and Amending Act, 2015 Repealing and Amending ( Second ) Act, 2015 Repealing and Amending Act, 2016 Repealing and Amending Act, 2017 Repealing and Amending ( Second ) Act, 2017 Other All India Services Act, 1951 Delimitation Act Enemy Property Act, 1968 Information Technology Act, 2000 Nuclear Liability Act Official Secrets Act ( India ) Representation of the People Act, 1951 Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 Right to Information Act, 2005 State Emblem of India ( Prohibition of Improper Use ) Act, 2005 The Foreigners Act, 1946 Repealed Pre-Independence Age of Consent Act, 1891 Caste Disabilities Removal Act, 1850 Criminal Tribes Act Hindu Widows ' Remarriage Act, 1856 English Education Act 1835 Prevention of Seditious Meetings Act, 1907 Post-Independence Anti-Copying Act, 1992 Foreign Exchange Regulation Act Gift Tax Act, 1958 Illegal Migrants ( Determination by Tribunal ) Act, 1983 Interest Tax Act, 1974 Maintenance of Internal Security Act Prevention of Terrorism Act, 2002 Terrorist and Disruptive Activities ( Prevention ) Act The Gold ( Control ) Act, 1968 Wealth Tax Act, 1957 Bills Proposed Foreign Education Providers Bill, 2013 Geospatial Information Regulation Bill Gujarat Control of Organised Crime Act Marriage Laws Amendment Bill Road Transport and Safety Bill Uniform civil code Lapsed Judges Assets Bill Women 's Reservation Bill Retrieved from `` https://en.wikipedia.org/w/index.php?title=The_High_Denomination_Bank_Notes_(Demonetisation)_Act,_1978&oldid=849506386 '' Categories : Acts of the Parliament of India 1978 Acts of the Parliament of India Desai administration Financial history of India Hidden categories : Pages with URL errors Use dmy dates from December 2016 Use Indian English from December 2016 All Wikipedia articles written in Indian English All articles with unsourced statements Articles with unsourced statements from December 2016 Talk Contents About Wikipedia Add links This page was last edited on 9 July 2018, at 13 : 34 ( UTC ). 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