Note ban was to counter black money, terror finance, Centre tells SC

'The withdrawal of the legal tender character of the specified bank notes was one of the critical steps in the series of transformational economic policy steps'

The 2016 demonetisation was a "well-considered" decision and part of a larger strategy to combat the menace of fake money, terror financing, black money and tax evasion, the Union government has told the Supreme Court.
 

Defending its decision to demonetise currency notes of Rs 500 and Rs 1000 denominations, the Centre told the top court the step was taken after extensive consultation with the Reserve Bank of India and advance preparations were made before the note ban was enforced.
 

The submissions were made in an affidavit filed in response to a batch of pleas challenging the Centre's 2016 demonetisation decision.