NO JAIL for those holding old notes after December 30
The government has said that there will be no jail term for those persons holding demonetised currency after December 30.
The government has said that there will be no jail term for those persons holding demonetised currency after Friday. While the government has proposed a heavy fine, it has made it clear that there will be no jail term.
On Wednesday the Union Cabinet cleared the promulgation of an ordinance under which possessing, transferring of receiving an amount of Rs 10,000 in banned Rs 500 and Rs 1,000 notes will be a punishable offence. As per the ordinance the maximum of 10 notes person will be allowed.
The name of the ordinance was called, 'The Specified Bank Notes Cessation of Liabilities Ordinance." The Cabinet also decided that the last date for deposit of old currency would be Friday. After December 30, the old notes can be deposited only at select offices of the RBI.
The Cabinet has also decided to impose a fine if the law is broken. While there is no decision as yet on the exact amount of fine, sources indicate that it could be Rs 50,000 or five times the amount in question or whichever is higher.
These
decisions
were
taken
to
help
the
government
get
a
better
estimate
of
the
money
coming
back
into
the
system.
This
would
in
turn
help
the
government
make
better
projections
in
the
Union
Budget.
A
three
month
window
between
January
1
and
March
31
2017
would
remain
open
to
deposit
old
currency
in
specified
offices
of
the
RBI.