Holding of more than 10 scrapped notes of Rs 500/1000 denomination will be punishable with a minimum fine of Rs 10,000, according to a new bill introduced in the Lok Sabha with an aim of eliminating the "possibility of running a parallel economy" using these. Demonetization: Know The Deposit And Withdrawal Rules
The Bill, to replace the ordinance promulgated on December 30, also provides for a minimum fine Rs 50,000 for the false declaration by persons who were abroad during the demonetization period (November 9-December 30, 2016) and given time to deposit the scrapped notes with RBI till March 31.
Once passed by Parliament, possession of more than 10 pieces of the old notes by individuals and more than 25 pieces for study, research or numismatics purpose will be a criminal offence attracting fine of Rs 10,000 or five times the cash held, whichever is higher. Big Relief: RBI To Lift Withdrawal Limits From ATMs
The Specified Bank Notes (Cessation of Liabilities) Bill, which seeks to end the liability of RBI and the government on the currency notes demonetised in November last, was introduced by Finance Minister Arun Jaitley amid stiff opposition by Trinamool Congress, which called it "illegal" and "anti-national".
Giving rationale behind the legislation, the document placed before Lok Sabha says it is aimed at eliminating the "possibility of running a parallel economy using the scrapped notes.
The bill states that the government took the demonetization decision on the recommendations of the RBI's central board to eliminate unaccounted money and fake currency notes from the financial system. RBI To Put New Rs 100 Notes In Circulation
The bill prohibits the holding, transferring or receiving of such notes from December 31, 2016, and seeks to confer power upon the court of a first class Magistrate to impose the penalty, reports PTI.