High Denomination Notes
In 1954, we had a high denomination Note of Rs.10,000/- which was demonetised in 1978 by the HIGH DENOMINATION BANK NOTES (DEMONETISATION) ACT, 1978, which stipulated that
On the expiry of the 16th day of January, 1978, all high denomination bank notes shall, notwithstanding anything contained in section 26 of the Reserve Bank of India Act, 1934, (2 of 1934) cease to be legal tender in payment or on account at any place.
"High denomination bank note" was defined as to mean a bank note of the denominational value of one thousand rupees, five thousand rupees or ten thousand rupees, issued by the Reserve Bank.
Legal Corner Icon — the image was hosted by the publisher and was not captured.The Rs. 10,000/- note of 1954 must be worth a Crore now. So there is nothing wrong in having a note of Rs.1 Crore now.
But before that if we are serious about unearthing or rather killing black money, may be the Rs.500/- and Rs.1000/- notes have to be demonetised and perhaps we can kill about Rs 20 Lakh Crores and that is more than twice the Union Budget. Banking Transaction Tax can do nothing, except harassing the genuine tax payers.