The Centre will amend the Reserve Bank of India Act, 1934 to void the legal status of Rs 500 and Rs 1,000 notes printed before November 9, when the decision to demonetise them took effect. A reference to the discontinuation of the high-value currency will also be made in the upcoming Budget, and a new law rendering the notes invalid will also be introduced, according to PTI.

While previous governments have introduced new laws ahead of demonetising specific currency denominations, the Narendra Modi-led central government discontinued the high-value notes by acting under Section 26 (2) of the RBI Act. Under the section, the government through a gazetted notification may declare any series of bank notes of any denomination illegal tender. The decision is made based on recommendation from the Central Board of the RBI, according to the section.

The country continues to grapple with a cash crunch caused by the demonetisation of Rs 500 and Rs 1,000 notes. The move to scrap the notes, which made up about 86% of the total currency notes in circulation, has slowed economic activity across sectors. The demonetisation decision was announced as part of the Centre’s efforts to fight corruption and black money.