The RBI has declined to reveal the cost incurred on shredding banned currency notes worth Rs 15,31,073 crore which returned to banks following demonetisation, an RTI activist said, citing a response from the central bank.&nbsp;

To a query under the Right to Information (RTI) Act, the Reserve Bank of India (RBI) said the process of destruction of banned notes got over in March 2018.&nbsp;

In its reply dated October 29 to the query by Chandrashekhar Gaud, an RTI activist from Neemuch in Madhya Pradesh, the RBI said invalidated notes worth Rs 10,720 crore did not return to the banking system.

The information was provided by the RBI’s Department of Currency Management, Gaud told PTI. The banned currency was destroyed through machines of the currency verification and processing system, it said.&nbsp;

To Gaud’s question about how much the destruction of banned currency cost, the reply gave no information. It cited Section 7(9) of the Right to Information Act, saying this information was not available and providing it would “disproportionately divert the resources” of the RBI.

Currency worth Rs 15,41,793 crore in denominations of Rs 500 and Rs 1,000 was in circulation when demonetisation was announced on November 8, 2016. In the time window offered for depositing the scrapped currency in banks, Rs 15,31,073 crore returned, it said.&nbsp;

Gaud said he also did not get a reply to his query as to how many Rs 500 and Rs 1,000 notes were destroyed. The RBI had informed in August this year that as much as 99.3 per cent of the junked Rs 500 and Rs 1,000 notes returned to the banking system.

The RBI has declined to reveal the cost incurred on shredding banned currency notes worth Rs 15,31,073 crore which returned to banks following demonetisation, an RTI activist said, citing a response from the central bank.

The RBI has declined to reveal the cost incurred on shredding banned currency notes worth Rs 15,31,073 crore which returned to banks following demonetisation, an RTI activist said, citing a response from the central bank. To a query under the Right to Information (RTI) Act, the Reserve Bank of India (RBI) said the process of destruction of banned notes got over in March 2018. In its reply dated October 29 to the query by Chandrashekhar Gaud, an RTI activist from Neemuch in Madhya Pradesh, the RBI said invalidated notes worth Rs 10,720 crore did not return to the banking system. The information was provided by the RBI’s Department of Currency Management, Gaud told PTI. The banned currency was destroyed through machines of the currency verification and processing system, it said. To Gaud’s question about how much the destruction of banned currency cost, the reply gave no information. It cited Section 7(9) of the Right to Information Act, saying this information was not available and providing it would “disproportionately divert the resources” of the RBI. Currency worth Rs 15,41,793 crore in denominations of Rs 500 and Rs 1,000 was in circulation when demonetisation was announced on November 8, 2016. In the time window offered for depositing the scrapped currency in banks, Rs 15,31,073 crore returned, it said. Gaud said he also did not get a reply to his query as to how many Rs 500 and Rs 1,000 notes were destroyed. The RBI had informed in August this year that as much as 99.3 per cent of the junked Rs 500 and Rs 1,000 notes returned to the banking system.

RBI refuses to state how much destruction of banned notes cost: RTI

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&#39;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)

Govt is mulling over an ordinance that will seek to impose fines on people in possession of banned notes beyond December 30

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)

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

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