The cabinet headed by Prime Minister Narendra Modi approved an ordinance to impose penalties on anyone possessing the demonetised Rs 500 and Rs 1,000 notes. The move aims to extinguish liability of government and RBI on the demonetised high-denomination notes.
According to the ordinance named as 'The Specified Bank Notes Cessation of Liabilities Ordinance', anybody who holds more than 10 notes of old currency may be fined and also have to serve a jail term of up to 4 years in certain cases.
The ordinance draft includes recommendations of the central board of directors of the Reserve Bank of India.
Earlier, in a surprise announcement on November 8 by the Prime Minister Narendra Modi, Rs 500 and Rs 1000 notes were declared as illegal currency. The government's move took out 86 per cent of money in circulation or Rs. 15.44 lakh crore.
The government had allowed holders to either exchange them or deposit in bank and post office accounts.
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Nandini
