New Delhi, Dec 28: As the 50-day period sought by Prime Minister Narendra Modi ended Wednesday, the Union Cabinet approved the note ban ordinance putting restrictions on hoarding old currency notes after a certain prescribed limit. Those ignoring this guideline will have to face the stringent punishment.
The Modi government on Wednesday gave its consent to the ordinance on demonetisation bringing the much-needed clarity over note ban. The ordinance relieved the government and Reserve Bank of India of the liability on the demonetised high-value currency notes.
According to the ordinance, no one will be allowed to keep, receive or transact the banned currency notes of Rs 500, and 1000 after March 31, 2017. Doing so will invite punishment to the extent of four-year jail term. The government has fixed the limit for keeping old notes as mementoes up to 10.
The ordinance allows submission of banned notes of Rs 500 and 1000 at the selected branches of the RBI after December 30, 2016. Anyone depositing old notes in RBI after the stipulated date will have to give a declaration on why he or she could not submit in the given time frame.
In case you are not able to go physically to a RBI branch up to March 31, 2017, then you can send it through an insured post along with a declaration why you couldn’t come, why you have not been able to deposit the money till now.
The penalty rules will be applicable if the old notes are not declared on March 31, 2017. Punishment for possession of more than 10 old notes.
4-year jail term if you keep old notes post March 31, 2017. Rs 5,000 fine on the transaction in old notes.
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While the facility to exchange the old notes has since been withdrawn, depositors still have time til Friday (December 30) to deposit the holding in their accounts.