Those Holding Banned Notes Post 31st March may Face Penalties

An ordinance named “The Specified Bank Notes Cessation of Liabilities Ordinance” has been approved by the cabinet on December 28th, 2016. As per the ordinance, possessing demonetised currency notes of Rs.500 and Rs.1000 denominations will invite legal action for holders of such currency. Below are the key highlights of the ordinance:

• Those holding the scrapped notes beyond the mentioned timeline may have to face monetary penalties or even a jail term. The exact punishment however has not been decided yet.
• Prior to issuing any formal notification, the Ordinance will soon be presented before President Pranab Mukherjee for approval.
• The cabinet, chaired by PM Narendra Modi, approved the ordinance which aims to amend the Reserve Bank of India Act and extinguish the liability of the government towards bearers of the banned currency post 31st March, 2017.