Ordinance on demonetisation gets Cabinet nod; 4-year jail for possession of old Rs 500, Rs 1,000 notes

New Delhi: The Union cabinet on Wednesday approved the Ordinance on deadline to deposit old notes. Name of the Ordinance is ‘The Specified Bank Notes Cessation of Liabilities Ordinance’.
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Penalty on holding of old notes
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The Ordinance is to extinguish liability of government and RBI on the demonetised high-denomination notes.

The Cabinet also cleared promulgation of an ordinance to penalise persons holding junked Rs 500, 1,000 notes.

As per the Ordinance, people involved in transaction of old notes will face penalty of
Rs 5000, while those possessing old notes in excess of 10 notes post March 31 will face 4-year Jail term in certain cases.

Official sources said the ordinance has been cleared, but did not say if the penal provisions would apply for holding the junked currency after the 50-day window to deposit them in banks ends as of December 30 or after March 31, till which time deposit of old currency notes at specified branches of the Reserve Bank after submitting a declaration form is open.

In 1978, a similar ordinance was issued to end the government’s liability after Rs 1,000, Rs 5,000 and Rs 10,000 notes were demonetised by the Janata Party government under Morarji Desai.

The government had, while announcing the demonetisation of the old currency on November 8, allowed holders to either exchange them or deposit in bank and post office accounts. While the facility to exchange the old notes has since been withdrawn, depositors have time till Friday to deposit the holding in their accounts.

With PTI Inputs

Sources: zeenews.india.com

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