Wednesday, 28 December 2016

Cabinet passes ordinance; fine, jail for holding old notes

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The Cabinet on Wednesday approved an ordinance to impose penalties on anyone possessing the demonetised Rs 500 and Rs 1,000 notes. 

The penalty for holding old currency in excess of 10 notes may include financial fines and a jail term of up to 4 years in certain cases.


The ordinance, named as 'The Specified Bank Notes Cessation of Liabilities Ordinance', is to extinguish liability of government and RBI on the demonetised high-denomination notes. 

In a surprise announcement by Prime Minister Narendra Modi on November 8, Rs 500 and Rs 1000 notes were declared as illegal currency.

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