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Ordinance cleared, those holding scrapped notes may face fine, 4-year jail term

The ordinance will extinguish the liability of the government and the Reserve Bank of India on the demonetised notes.

By: Express Web Desk | New Delhi | Updated: December 28, 2016 4:55 pm
demonetisation, rs 500 note, Rs 1000 note, note ban, December 30 deadline, note ban deadline, narendra modi, modi news Prime Minister Narendra Modi interacting with the economists and other experts, on the theme “Economic Policy – The Road Ahead”, organised by the NITI Aayog in New Delhi on Tuesday (PTI Photo / PIB)

The Cabinet has cleared the promulgation of an ordinance with the aim of penalising those found holding the junked Rs 500 and Rs 1,000 currency notes after the deadline ends. The ordinance will extinguish the liability of the government and the Reserve Bank of India on the demonetised notes.

A senior government official had told The Indian Express that putting a cap on the deposit of the old notes on December 30 will help the government in better estimating the money coming back into the system and help it in making projections for the Union Budget 2017-18. The official added that a three month window between January 1, 2017 and March 31, 2017 for deposit of old currency notes in specified offices of the RBI will remain open, but only for exigencies.

WATCH | Cabinet Approves Ordinance To Penalise People Holding Banned Notes

Official sources told PTI they were unsure whether 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.

The penalty for holding junked notes in excess of 10 notes may attract financial fines and a jail term of up to four years in certain cases.

In 1978, the then government under Morarji Desai had issued a similar ordinance to end the government’s liability after Rs 1,000, Rs 5,000 and Rs 10,000 currency notes were withdrawn.

The government had announced the demonetisation move on the night of November 8 in a bid to flush out black money, cut down on corruption and eliminate terrorist funding from counterfeit notes. December 30 was the deadline specified by the Centre for people to deposit/exchange old notes. Since then, while exchange of notes has been stopped, deposit of the scrapped currency can still be done at banks till Friday.

(With inputs from PTI)

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  1. A
    Anuj
    Dec 28, 2016 at 7:56 am
    Yaar ye pm rbi hai ye jhoote waado ki dukan. lt;br/gt;Atleast stick to your policy and words
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    1. R
      Raj
      Dec 28, 2016 at 1:57 pm
      Do you mean to say that 125 crore people should not have even 100 crores collectively to enjoy in these grim times? If that is the mentality of a chela imagine what his ustaad must be thinking.
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      1. R
        Raj
        Dec 28, 2016 at 1:55 pm
        You mean to say 125 crore people should not have even 100 crore collectively to enjoy in these grim times? If that is the mentality of a chela imagine what his ustaad must be thinking.
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        1. R
          Raj
          Dec 28, 2016 at 9:01 am
          I-T raids uncovered Rs 3,185 crore of undisclosed income since demonetisation.lt;br/gt;lt;br/gt;Shivaji statue budget Rs 3,600 crore.lt;br/gt;lt;br/gt;Country's economy stopped for two months, hundreds died and all that we gained is a statue.
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          1. R
            Raj
            Dec 28, 2016 at 8:59 am
            Only a bhakt who is paid can say what you just said. This move by the govt will further promote inspector rule. But blind bhakts will conveniently refuse to see this.
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