Demonetisation: Deposit your old notes or pay heavy penalty after December 30

Submit your old Rs 500 and Rs 1,000 notes in banks before December 30 if you want to avoid heavy penalty. According to reports, holding “high amount” of junked banknotes after December 30 can draw a fine of Rs 50,000 or 5 times the amount in old notes. 

“There is a thinking within the government to provide for penalising those caught with high amounts of banned notes. If this is introduced, it will be in the form of an ordinance,” a government official in the know of the matter told media. 

The officer, who did not wish to be identified, referred to a constitutional provision that allows a law to be enacted when Parliament is not in session. There was no official word on the move which was likely to come up before the cabinet on Wednesday, news agency PTI said.

Also read | Demonetisation: RBI gives additional 60 days to repay crop loans to farmers; prompt repayment to get extra 3 per cent interest subsidy

In this ordinance is implemented than it will be in violation of earlier announcement, made by PM Modi on Nov 8, which allows people to deposit old notes at Reserve Bank of India till March 31, 2017. 

But since the announcement, the government and RBI have frequently changed rules, 60 times at the last count.

December 30 is the day when the government’s deadline for currency overhaul ends, which is expected to bring an end to the cash withdrawal limits and other restrictive measures on currency deposit and withdrawal. However, the government is also expected to notify a slew of new cash rules.