January 3: The Supreme Court of India on Monday upheld the legality of the government’s decision in 2016 to demonetise 86 percent of the country’s cash in circulation, saying the decision was taken in consultation with the central bank and followed due process.

A bench of five justice of India’s apex top court passed the verdict by a majority on petitions questioning the move. According to media reports, one out of the five justices wrote a dissenting note.

“The notification dated 8th November 2016 does not suffer from any flaws in the decision-making process,” Al Jazeera quoted Justice BR Gavai, one of the four justices who agreed on the decision, as saying in a written opinion.

The Indian government’s decision on November 8, 2016 to demonetize all 500-rupee and 1,000-rupee banknotes have had implications in Nepal.

The decision created confusion over the exchange of the Indian currency worth Rs 8 billion held by banks in Nepal.

Nepal Rastra Bank’s Deputy Spokesperson Narayan Prasad Pokharel said that the central bank is making diplomatic efforts to exchange the banned currency.

Although the central bank has been in constant talks with the Reserve Bank of India to resolve the issue and initiatives have also been taken at the prime-ministerial level, India is not ready to refund, said a source at NRB.

In a surprise TV announcement in November 2016, India’s Prime Minister Narendra Modi led the shock move to outlaw all 500-rupee and 1,000-rupee notes – 86 percent of the cash in circulation – to target undeclared “black money” and fight corruption, Al Jazeera added.

According to the Doha-based media network, the move, widely known as demonetisation, badly hurt India’s cash-dependent economy.

“It caused losses for small businesses and manufacturers, bringing on an economic slump and months of financial chaos for ordinary, cash-dependent Indians. Hundreds of thousands of people lined up outside banks and ATMs for days to exchange their cash savings for legal tender as cash ran dry.”

Despite the hue and cry, India’s Supreme Court on Monday validated the decision.

However, one of the justices, BV Nagarathna, gave a dissenting judgment, calling the decision “unlawful” and “an exercise of power, contrary to law.” She reportedly said the currency ban could have been carried out through an act of parliament, not by the government.

According to media reports, the Indian citizens were given a month’s time to exchange the demonetized currency but that facility was not given to Nepal.