Demonetisation of notes
21/1978 S. 2.
(1) The Bank shall have the power on giving three months
notice in the Gazette to call in any notes or coins on
payment of the face value thereof and any such notes or
coins with respect to which a notice has been given under
this section shall, on the expiration of the notice, cease to
be legal tender, but shall be redeemed by the Bank upon
such conditions as may be prescribed.
(2) A person shall not be entitled to recover from the Bank the
value of any last stolen, mutilated, or imperfect note or
coin. The circumstances in which, and the conditions and
limitations subject to which, the value of lost,stolen,
mutilated or imperfect notes or coins may be refunded as of
grace shall be within the absolute discretion of
(3) If the Minister considers it necessary or expedient to do he
may, by order published in the Gazette, direct that such
notes and coins as may be specified in the order shall cease
to be legal tender as from dates so specified shall not be
redeemed by the Bank unless the Bank is satisfied that any
omission to redeem those notes or coins prior to that date,
arose from circumstances which, in the opinion of the Bank,
in their absolute discretion, were to excuse the omission.