Photo Credit: Thinkstock

Get rid of your old notes by March end or face up to 4 years in jail

29 December, 2016

The government on Wednesday reportedly cleared an ordinance, which stipulates that if a person is found possessing old Rs 500 and Rs 1,000 currency notes after 31 March 2017, he or she could face up to a 4 year jail term.

The decision follows the government’s 8 November decision to demonetise Rs 500 and Rs 1,000 notes, which made up for 86% of the total currency in circulation, in a bid to crack down on black money.

What should you do if you possess such notes after 30 December?

Although exact details on the ordinance are still awaited, news reports say that after the 30 December deadline for tendering in old notes ends, people will still have till 31 March to deposit the same with designated Reserve Bank of India (RBI) branches. However, reports say that those doing so will also have to submit an affidavit, declaring the origin of the money and other details.

But is there a limit on how many old currency notes one can legally possess beyond 30 December?

If news reports are to be believed, people are allowed to hold no more than 10 pieces of both denominations. Penalties up to five times the amount of old currency in possession are reportedly in the offing.

Are there any other provisions to the Specified Bank Notes Cessation of Liabilities Ordinance?

Yes, this ordinance effectively ends the RBI’s liability to “pay the bearer” of any such note in possession. This is a legal requirement, as by law the RBI is liable to honour the promise made to a bearer.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
Lawyers challenge scrapping of Rs 500 and Rs 1,000 notes

Lawyers challenge scrapping of Rs 500 and Rs 1,000 notes

Maulik Vyas 10 months ago
Within hours of the government’s decision to demonetise Rs 500 and Rs 1,000 currency notes, two lawyers have approached the Bombay High Court, urging the...
Demonetisation: Just how much black money did Indians manage to launder?

Demonetisation: Just how much black money did Indians manage to launder?

Aman Malik 8 months ago
When Prime Minister Narendra Modi announced on the evening of 8 November last year that Rs 500 and Rs 1,000 currency notes will no longer...
Chaos from note ban continues as queues swell at banks, ATMs

Chaos from note ban continues as queues swell at banks, ATMs

PTI 9 months ago
Several ATMs across the city left the people wanting to withdraw money disappointed, even as customers lined up outside banks to exchange and deposit money...
No Comments

Get rid of your old notes by March end or face up to 4 years in jail

Powered by WordPress.com VIP