President approves promulgation of Specified Bank Notes Ordinance; holding old notes now a crime

The President of India Pranab Mukherjee has approved the promulgation of the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016.

Ordinance provides for, among others provisions, to prevent any continued parallel transactions with the old notes of Rs 500 and Rs 1,000 denominations (Specified Bank Notes-SBNs) by unscrupulous element after December 31. 

After the speciified deadline, holding, transferring and receiving SBNs will attract a fine of Rs 10,000 or five times the amount of the face value of the SBN involved in the contravention, whichever is higher.

However, no jail-term will be given to those found in possesion of old notes. 

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