Cabinet on Wednesday cleared promulgation of an ordinance to penalize persons who carry Rs 500, 1,000 notes after March 31.

According to the new rule passed on Wednesday, people who keep more than 10 old notes after March 31 have to pay the fine of Rs 50,000.

Sources said that "the ordinance is being brought as it was found to be necessary to prevent future litigations against the government for junking Rs 500 and Rs 1,000 notes."

Official sources said "the ordinance has been cleared, but did not say if the penal provisions would apply for holding the junked currency after the 50-day window to deposit them in banks ends as of December 30 or after March 31, till which time deposit of old currency notes at specified branches of the Reserve Bank after submitting a declaration form is open. The penalty for holding old currency in excess of 10 notes may also include a jail term of up to 4 years in certain cases."

In 1978, a similar ordinance was passed to end the government’s liability after Rs 1,000, Rs 5,000 and Rs 10,000 notes were demonetized by the Morarji Desai government.

The government had announced on November 8, asking people to either exchanger or deposit in bank and post office accounts.

The facility to exchange the old notes has been withdrawn and old notes can be deposited till Friday.

Govt to Pass Ordinance, Rs.50,000 Penalty for Those Having Old Notes

BY M. DIVYA SRI