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Govt mulls over imposing heavy fine on possession of banned notes above Rs 10,000

The transfer of over Rs 10,000 in old notes may even result in a punishment and a minimum fine of Rs 50,000 or five times the amount in question, whichever is higher. Photograph: (AFP)

WION New Delhi, Delhi, India Dec 27, 2016, 08.17 AM (IST)

In a fresh crackdown on black money, the government is mulling over an ordinance that will seek to impose fines on people in possession of banned Rs 500 and Rs 1,000 notes beyond December 30.

The maximum number of banned notes one can possess regardless of denomination will be 10.

The transfer of over Rs 10,000 in old notes may even result in a punishment and a minimum fine of Rs 50,000 or five times the amount in question, whichever is higher.

Violations of the rule will carry a criminal liability and municipal magistrates will hear cases on violations, said the NDTV report.

However, there was no official word on the act which is likely to come up before the Cabinet on Wednesday.

The ordinance may extinguish the liability of the government and RBI towards the promise to pay the bearer of these notes their value because of a statutory requirement.

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 Janata Party government under Morarji Desai.

The ordinance also includes recommendations of the central board of directors of the RBI.

The period to deposit old notes in banks ends on December 30, after which the banned notes have to be directly deposited in the RBI.

The RBI had earlier this month issued an order stating that an amount exceeding Rs 5000 in demonetised notes cannot be deposited in the banks more than once till December 30.

But later, the order was withdrawn.

To flush out black money from the country, Prime Minister Narendra Modi had banned 500 and 1,000 rupee notes on November 8.

(WION)

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