(HT)
Terming the invalidation of Rs 500 and Rs 1,000 notes as a “bold move” to check black money, the finance ministry today said no serious attempt of this scale was made in the past.
“No serious attempt at this scale has been attempted in the past. In the two attempts of demonetisation made in 1946 and 1978, the scale of operation was not as expansive,” the finance ministry annual report 2016-17 released today said.
The present scheme under Section 26 of the Reserve Bank of India Act, 1934, is a bold move of the government to eradicate black money or slush money operating for decades, it said.
The legal tender character of banknotes in the denomination of Rs 500 and Rs 1,000 was cancelled with effect from the expiry of November 8, 2016, with the objective to eliminate black money and curb infusion and circulation of fake Indian currency notes (FICNs).
