Cabinet passes ordinance; fine, jail for holding old currency after March 31, 2017

New Delhi: With the last date for depositing old currency in the banks is coming close, PM Modi on Wednesday chaired a meeting with his cabinet members. During the meet, the cabinet has passed an ordinance which says ‘holding old currency beyond March 31 could lead to a hefty fine or imprisonment’.

• The penalties will be imposed on anyone who possess old Rs 500 and Rs 1000 notes post December 30,  as the last date to deposit the demonetised money in banks would expire on this date

 

• Only selected RBI branches would accept old currency of Rs 500 and Rs 1000 after December 30

 

• In case a person submits old notes in RBI post December 31, he/ she will have to submit a declaration, citing reason for not submitting it in the given time frame

 

• A fine of Rs 5000 will be levied on people who would indulge in any transactions using old currency

 

• The ordinance, named as 'The Specified Bank Notes Cessation of Liabilities Ordinance', will remove liability of government and RBI on the demonetised Rs 500 and Rs 1000 notes

 

• According to the sources, possessing old currency post March 31 could lead to a imprisonment for four years

In a very strong step, Prime Minister Narendra Modi on November 8 demonetised Rs 500 and Rs 1000 notes and introduced new currency of Rs 2000, in order to eradicate the black money from the country. This was followed by Government’s efforts to press the use of digital form of transactions and payments which will be in line with PM Modi’s idea of Digital India. As an aftermath to demonetisation, even many small vendors resorted to digital transactions and the use of e-money and e-wallets like Paytm.