Demonetisation: Union Cabinet approves ordinance to penalise people holding junked Rs 500, 1,000 notes after Dec 30

Union Cabinet on Wednesday passed an ordinance to prevent future litigations against the government junking Rs 500 and Rs 1000 notes.

The name of the Ordinance is 'The Specified Bank Notes Cessation of Liabilities Ordinance. It seeks to prevent ambiguity and harassment over note ban, a proviso would now be added to ensure that certain category of people can still deposit the old notes in RBI branches between December 31 and March 31 next, they said.

The category is likely to include people in armed forces, people who were abroad and ordinary citizens who can explain that the money is part of their legitimate income and they could not deposit it in banks due to some reasons.

ALSO READ: (Old notes can be deposited in RBI after Dec 30, Govt to bring ordinance for process)

A penalty will now be imposed on people for possessing certain quantity of old notes after December 30, say sources.

Opposition parties have attacked the Centre over sudden and abrupt changes in the post demonetisation guidelines.  Prime Minister Narendra Modi on November 8 had announced demonetisation of higher denomination notes in the country to curb black money and corruption.

ALSO READ: (Modi Cabinet approves ordinance to penalise people holding junked Rs 500, Rs 1,000 notes | Top Highlights)