The High Denomination Bank Notes (Demonetisation) Act, 1978

(1) This Act may be called the High DenominationBank Notes (Demonetisation) Act, 1978. (2) It extends to the whole of India. (3) It shall be deemed to have come into force on the 16th day of January, 1978.

In this Act, unless the context otherwise requires,-- (a) "bank" means-- (i) a banking company as defined in clause (c) of section 5 of the Banking Regulation Act,1949 (10 of 1949); (ii) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955); (iii) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act,1959 (38of 1959); (iv) a corresponding new bank constituted under section 3 of the Banking Companies(Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970); (v) a regional rural bank established under sub-section (1) of section 3 of the Regional RuralBanks Act, 1976 (21 of 1976); (vi) a co-operative bank as defined in section 2 of the Reserve Bank of India Act, 1934(2 of 1934); and includes every branch thereof; (b) "bank notes" means the bank notes issued by the Reserve Bank of India under section 22 ofthe Reserve Bank of India Act, 1934 (2 of 1934); (c)"distinctive number" in relation to a high denomination bank note means the number includingthe alphabetical and numerical prefixes appearing on the face of the note; (d) "high denomination bank note" means a bank note of the denominational value of onethousand rupees, five thousand rupees or ten thousand rupees, 1[issued by the Reserve Bankimmediately before the commencement of this Act]; (e) "public sector bank" means a bank referred to in sub-clause (ii), (iii) or (iv) of clause (a); (f) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of IndiaAct, 1934 (2 of 1934); (g) "scheduled bank" means a public sector bank or any other bank, being a bank included in theSecond Schedule to the Reserve Bank of India Act, 1934 (2 of 1934); (h) "State Bank" means the State Bank of India constituted under the State Bank of India Act,1955 (23 of 1955).

On the expiry of the 16th day ofJanuary, 1978, all high denomination bank notes shall, notwithstanding anything contained in section 26of the Reserve Bank of India Act, 1934 (2 of 1934), cease to be legal tender in payment or on account atany place.

Save as provided by orunder this Act, no person shall, after the 16th day of January, 1978, transfer to the possession of anotherperson or receive into his possession from another person any high denomination banknote.

(1)Every bank and Government treasury shall prepare and send to the Reserve Bank in the manner providedin this section a return showing separately under each denominational value the total value of highdenomination bank notes of that value held by it at the close of business on the 16th day of January, 1978and distinctive numbers of high denomination bank notes of that value: Provided that a bank or a Government treasury in which the currency chest of the Issue Department ofthe Reserve Bank has been established shall also submit a separate return showing separately under eachdenominational value the total value of high denomination bank notes held in such currency chest at theclose of business on the 16th day of January, 1978 and the distinctive numbers of high denomination banknotes of that value. (2) Every such return shall be prepared and presented as provided in sub-section (3) in triplicate andshall be signed by the Manager of the bank or other person in charge of the bank or the Governmenttreasury. (3) Every return under sub-section (1) shall be presented for forwarding to the Reserve Bank to theManager of the sub-office, office or branch of the Reserve Bank at the places specified under sub-section(2) of section 7, or to the District Magistrate, or to the Sub-divisional Magistrate or, if such Manager orMagistrate is not available, to the senior-most Revenue or Police Officer available not later than 3.00 P.M.on the 17th day of January, 1978: Provided that if it is not feasible to present the return to any such person as aforesaid, it may bepresented by handing two copies thereof not later than 3.00 P.M. on the 17th day of January, 1978 to atelegraph office, one copy for despatch by express telegram to the Reserve Bank at Bombay at theexpense of the bank or the Government treasury, as the case may be, and the other copy for return to theperson presenting it in the manner provided in sub-section (4), and by despatching the third copy requiredby sub-section (2) by registered post on the same day to the Reserve Bank at Bombay. (4) The officer to whom the return is presented shall give back to the person presenting it one copythereof under his signature and seal of office in acknowledgement of receipt on which shall also berecorded the time and date of receipt, and such officer shall without delay forward one copy of the returnto the Reserve Bank at Bombay. (5) The Manager or other person in charge of every bank or Government treasury shall, immediatelyafter the preparation of the returns required to be submitted under this section, cause the highdenomination bank notes mentioned therein to be kept in a separate receptacle and seal the same with hisseal and of the officers having custody of such receptacle.