Ordinance on old notes gets President's assent
Official sources said the ordinance was required to prevent continuation of the old currency as a medium of trade and commerce.
New Delhi: To prevent a parallel economy being run on junked currency, the government on Friday made holding, transfer and receiving of the demonetised note a criminal offence, punishable with a minimum fine of Rs 10,000. This follows President Pranab Mukherjee approving promulgation of the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 that provides for a fine of Rs 10,000 or five times the cash held, whichever is higher, on holding of more than 10 banned 1,000 and 500 rupee notes. Official sources said the ordinance was required to prevent continuation of the old currency as a medium of trade and commerce.
While NRIs have been given time till June 30 to deposit their old notes, any individual returning to India from abroad will have to make a declaration to customs authority at the airport about the number and denomination of the specified bank notes or junked currency he or she is carrying. “The details of the declaration and statements that are required to be submitted along with the SBNs at the time of deposit in RBI Issue Offices will be separately announced by RBI. Any false declaration will invite a fine of Rs 50,000 or five times the amount of the face value of the SBN tendered, whichever is higher,” a finance ministry statement said.