New Delhi [India], Dec. 28 : The Cabinet on Wednesday approved promulgation of an Ordinance to make possession of a large number of scrapped banknotes a penal offence making holding of old Rs.
1,000 and 500 notes after March 31st beyond a threshold amount a criminal offence. The possession will attract a monetary fine of Rs. 10,000 or five times the cash held, whichever is higher. The Specified Bank Notes Cessation of Liabilities Ordinance also provides for amending the Reserve Bank of India Act to provide legislative support for scrapping the demonetised banknotes that are not returned.
The last date for depositing old currency notes in bank accounts and post offices is expiring on Friday and thereafter, people can deposit such notes only in the RBI after giving valid reason for being unable to do so during the 50 day period as announced by Prime Minister Narendra Modi on November 8.
Furnishing wrong information while depositing the old currency between January 1 and March 31 will attract a fine of 5,000 rupees or five times the amount.
The Ordinance will come into force once it gets Presidential assent. Of the 15.4 lakh crore rupees worth of currency that was scrapped, about 14 lakh crores rupees have been deposited in banks or exchanged.