The government has passed an ordinance as per which penalties will be imposed on people who hold old currency in Rs 1000 and Rs 500 notes beyond the 30th of December (The end of 50 day window).
This ordinance was approved by a cabinet which was headed by PM Modi. As of now, the punishment is yet to be finalized but according to sources the holder would have to pay a fine of minimum Rs 50,000 or 10 times the amount that is held; whichever amount will be more shall be imposed as penalty.
This would come under criminal liability and the penalty would be decided by the municipal magistrate after hearing the cases. The maximum number of demonetized notes that a person is allowed to hold is 10; beyond that, he will have to pay a fine.
This ordinance is drafted according to recommendations by the RBI and central board of directors.
After the 30th of December, the notes that are banned will have to be deposited directly with the RBI; till now, the grace period hasn’t been specified.
So guys, do you have more than 10 banned notes? If yes, deposit them right away!
