Cabinet passes ordinance penalising citizens for holding old notes beyond March 31: Reports
The government has not officially announced details of the new rules yet.
The Union Cabinet on Wednesday approved an ordinance that will penalise citizens for possessing more than Rs 10,000 in the demonetised Rs 500 and Rs 1,000 notes after March 31, 2017. Citizens can only hold a total 10 old notes, whatever the denomination, the report added.
The penalty for possessing, transferring or receiving the old bills could be a four-year jail term as well as a fine, PTI reported. However, there was no official confirmation on the details of the ordinance. The Cabinet also reportedly approved an ordinance to amend the Reserve Bank of India Act to remove their liability and the central bank’s on the demonetised notes, PTI reported.
Reports added that the deadline for depositing the old notes at the bank remains December 30. Beyond this, citizens will have to submit a declaration to the Reserve Bank of India and make deposits at specific RBI offices to submit any old notes.
The government had, on November 8, demonetised Rs 500 and Rs 1,000 notes, which made up 86% of India’s currency, saying the move would help smoke out those hoarding black money. It has since said that the decision will also push India into becoming a cashless economy. The move has been widely criticised by the Opposition and economists, and citizens have faced a massive cash crunch ever since.