Demonetisation ordinance passed: 4-year jail, Rs 5,000 fine for possessing more than 10 scrapped notes
The ordinance allows exchange of limited amounts of banknotes at offices of the Reserve Bank of India until March 31.
The government has rolled out an ordinance to impose penalties on anyone possessing the junked Rs 500 and Rs 1,000 notes beyond December 30 when the deadline to deposit them in banks expires.
The Union cabinet has approved the Ordinance called 'The Specified Bank Notes Cessation of Liabilities Ordinance'.
According to a TOI report, old notes can be possessed only for the purpose of research and numismatics and the measure is intended to end any prospect of a "parallel currency" continuing after the deadline.
The ordinance will, however, have a clause allowing people to deposit scrapped notes at RBI branches as promised by the government, after giving reasons for doing so.
As per the Ordinance, people involved in transaction of old notes will face penalty of Rs 5000, while those possessing old notes in excess of 10 notes post March 31 will face 4-year Jail term in certain cases, Zee News reported.
"Possession of old notes must be made illegal and punishable to ensure that no one is forced to accept scrapped currency as payment or wages," TOI reported, quoting its source. The ordinance is expected to be replaced by a law in the Budget session of Parliament, likely to begin by the end of January.