Holding demonetised notes after 31 March deadline would be a criminal offence. The Cabinet today cleared promulgation of an ordinance to penalise persons holding demonetised Rs 500 and Rs 1,000 notes after 31 March. That is the deadline to deposit these notes at the RBI window ends.
The last date for depositing old currency in banks is December 31 this year.
The ordinance will extinguish the liability of the government and the Reserve Bank of India on the demonetised notes. A three month window between January 1, 2017 and March 31, 2017 for deposit of old currency notes in specified offices of the RBI will remain open, but only for exigencies.
The penalty for holding junked notes in excess of 10 notes may attract financial fines and a jail term of up to four years in certain cases.
Transferring or receiving an amount of over Rs. 10,000 in banned 500 and 1,000-rupee notes will be a punishable offence. The maximum number of banned notes, of any denomination, that a person will be allowed to have is 10.
