Old notes can be deposited in RBI after Dec 30, Govt to bring ordinance for process

Minister of State for Finance Arjun Meghwal on Tuesday confirmed that the Union Government is set to bring an ordinance for the process of depositing old notes of Rs 500 and Rs 1,000 after set deadline of December 30, due to expire in three days. 

On November 8, Prime Minister Narendra Modi announced that old notes can be deposited in the Reserve Bank of India till March 31, 2017. However, media reports on Monday night suggested that government may issue an ordinance to levy heavy penalty on people in possession of 10 or more notes of junk currency. 

“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 quoted in media. 

Since the Nov 8 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.

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