High Denomination Bank Notes (Demonetisation) Act,1978
Act No : 11
Section :
Exchange of high denomination bank notes held by banks and governmenttreasuries.
6.Exchange of high denomination bank notes held by banks and government treasuries. (1) A bank other than a public sector bank may obtain from the Reserve Bank or a public sector bank an equivalent amount in exchange for the high denomination bank notes declared by it in the return referred to in section 5 by credit to an account maintained with the Reserve Bank or a public sector bank or in bank notes. (2) A public sector bank may obtain from the Reserve Bank an equivalent amount in exchange for the high denomination bank notes declared by it in the return referred to in section 5 or the high denomination bank notes received by it in exchange under sub-section (1) by credit to an account with the Reserve Bank or in bank notes. (3) A Government treasury may obtain from the Reserve Bank an equivalent amount in exchange for the high denomination bank notes 120 declared by it in the return referred to in section 5 in bank notes or by credit to Government account. (4) Notwithstanding anything contained in sub-sections (1), (2) and (3), where the return referred to in section 5 is presented in the manner provided in the proviso to sub-section (3) of that section, the exchange referred to in this section may be effected only by the Reserve Bank at Bombay. (5) Every application for the exchange of high denomination bank notes under this section shall be accompanied by the copy of the return received under sub-section (4) of section 5 which contains the distinctive numbers of such bank notes.
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