New Delhi: The Union Cabinet on Wednesday approved an ordinance or executive order under which possessing, transferring or receiving an amount of over Rs 10,000 in banned 500 and 1,000-rupee notes will be a punishable offence.
As per the ordinance, persons holding more than ten notes of the old high denomination units after March 31, 2017, would face a fine of Rs 50,000 and also face 4 year jail term. The maximum number of banned notes, of any denomination, that a person will be allowed to have is 10.
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.
Notably, the government had, while announcing the demonetisation of the old currency on November 8, allowed holders to either exchange them or deposit in bank and post office accounts.