New Delhi: Cabinet on Wednesday cleared promulgation of an ordinance to penalise persons holding junked Rs 500 and Rs 1,000 notes beyond March 31.
According to the new rule, Rs 50,000 will be fined for keeping more than 10 old notes beyond March 31.
The ordinance is to extinguish liability of government and Reserve Bank of India on the demonetised high-denomination notes.
Sources said that the ordinance is being brought as it was found to be necessary to prevent future litigations against the government for junking Rs 500 and Rs 1,000 notes.
Seeking to prevent harassment and any ambiguity, a proviso would be added to ensure that certain category of people can still deposit the old notes in RBI branches between December 31 and March 31 next, the sources were quoted as saying.
The category may include people in the armed forces, people who were abroad and ordinary citizens who can explain that the money is part of their legitimate income and they could not deposit it in banks due to valid and justifiable reasons.
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 Morarji Desai government.
The government had, while announcing the demonetisation of the old currency on November 8, allowed holders to either exchange them or deposit them in bank and post office accounts.
While the facility to exchange the old notes has since been withdrawn, depositors have time till Friday to deposit the holding in their accounts.
