Finance Minister Arun Jaitley on Friday introduced a bill on demonetisation in the Lok Sabha to formally make the banning of Rs 500 and Rs 1,000 notes a law.

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The Specified Bank Notes (Cessation of Liabilities) Bill, 2017, seeks to replace the ordinance on demonetisation promulgated by the government in December 2016.

The bill was opposed by Trinamool Congress but the opposition was overruled by the chair.

On November 8, 2016 Prime Minister announced the decision to demonetise the old Rs 500 and Rs 1,000 notes as it was helping terrorists in conducting activities against the country.

The move resulted in 86% of the cash currency going out of use and created several problems for people as well as industries which were heavily dependend on cash.

It also stalled the growth of the economy and many other ratings agencies to criticise the move as well as downgrade the growth expectations from India in the near term.