Keeping banned notes after March 31st can be a criminal offence
The cabinet on Wednesday approved an ordinance which makes possession of demonetised Rs 500 and Rs 1,000 notes beyond March 31, 2017 illegal, providing for a jail term for violators.
People can deposit old notes in banks up to December 30th and with the Reserve Bank of India up to March 31st next year.
Official sources said the ordinance called "The Specified Bank Notes Cessation of Liabilities Ordinance" will be sent to President Pranab Mukherjee, currently in Hyderabad, for approval before notification.
The ordinance, approved during the cabinet meeting chaired by Prime Minister Narendra Modi, seeks to amend the Reserve Bank of India Act, aimed at extinguishing the liability of the government towards bearers of such notes.
The ordinance also makes it clear that collection of old notes up to ten in number will not invite prosecution.
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