The government on Wednesday notified a law which said that holding of more than 10 demonetised notes would be punishable with a minimum fine of Rs 10,000. The Specified Bank Notes (Cessation of Liabilities) Act, 2017 which was passed by Parliament in February also provides for a minimum fine of Rs 50,000 for false declaration by persons who were abroad during the demonetisation period of November 9 and December 30, 2016 and given time to deposit such notes with the RBI until March 31.
What the law on holding old notes states:
- Possession of more than 10 pieces of old notes by individuals and more than 25 pieces for study, research or numismatic purposes will be a criminal offence. It would attract a fine of Rs 10,000 or five times the cash held, whichever is higher.
- The new law also ends the liability of the RBI and government on demonetised notes.
- The law also bars holding, transferring or receiving old notes from December 31 2016.
- The court of a first class magistrate will have the power to impose the penalty.