Report No. 250

29. Reserve Bank of India (Amendment and Miscellaneous Provisions) Act, Act 54 of 1953

Category: Banking and Insurance

Recommendation: Repeal

The Act was enacted to amend the Reserve Bank of India Act, 1934 and to add certain provisions with regard to high denomination notes. Most provisions of this Act have been repealed by the Repealing and Amending Act, 1957. Only Section 9 of this Act remains which prescribes that the High Denomination Bank Notes (Demonetisation) Ordinance, 1946 would not apply to any bank note of the denominational value of Rs. 500, Rs. 1000 or Rs. 10,000 issued after the commencement of this Act, but no such bank note issued before 13th January 1946 shall be legal tender in payment or on account of the amount expressed therein at any place in India.

The Act has served its purpose. Hence, the Central Government should repeal this Act. The Ministry of Law and Justice should also ascertain the status of the High Denomination Bank Notes (Demonetisation) Ordinance, 1946 and if it is still in force, the Central Government should repeal this Ordinance as well. A suitable savings clause should be inserted in the repealing Act. This Act has also been recommended for repeal by the PC Jain Commission Report (Appendix A-1).