New Delhi, Nov 9: Prime Minister Narendra Modi made a big announcement on Tuesday by declaring Rs 500 and 1,000 notes as invalid. While the move has received mixed reactions, one must know that this is the second time in the history of India that high value notes are being scrapped.
Back in 1978, the then Prime Minister, Morarji Desai had banned all currency above the Rs 100 denomination. That year too the ban was enforced to tackle the problem of black money.
In the year 1938 under the British the highest denomination note, Rs 10,000 was printed. A new version of the note came into circulation in 1954. These notes were scrapped twice in the years 1946 and 1978. When Morarji Desai was in power, he demonitized the Rs 1,000, 5,000 and 10,000 notes.
In 1987, the Rs 500 note was re-introduced. The Rs 1,000 note came back in circulation in November 2000. The reason cited was that it would be easier to do business. This was done to help contain the high number of bank notes that were in circulation due to inflation.