Possession of more than 10 old notes after Dec 30 may attract minimum Rs 50,000 penalty

New Delhi: With the old Rs 500 and Rs 1000 currency notes set to become completely illegal post December 30, the government is likely to come up with a new ordinance in regards to the usage of the old notes.

According to report, the government is planning for a new ordinance on holding of old notes and is likely to come up with it before December 30.

Reports said that there could be a cap of holding no more than 10 notes of each after December 30 and violation of the rule could draw a fine of a minimum of Rs 50,000 or 5 times the amount in question -- whichever is higher, but there was no confirmation.

Holders of such currency have an option to deposit them in RBI by March 31 but even that period may be curtailed, the reports said.

Out of the Rs 15.44 lakh crore worth of 500 and 1000 rupee notes in circulation on November 8, close to Rs 13 lakh crore have been deposited in accounts or exchanged for valid currency.

There was no official word on the move which is likely to come up before the Cabinet on Wednesday but sources said penalties may be imposed on anyone holding more than 10 notes each of the old currency after December 30.

If at all the government has to come with the new ordinance, it has to be done before December 30 considering that post this date, the demonetised currency notes of Rs 500 and Rs 1000 will become completely illegal.

Earlier on November 8, in a move to fight corruption and black money, the government demonetised the old notes of Rs 500 and Rs 1000 making them illegal tenders.

However, the government permitted that these old notes could be either exchange or deposited at the banks up to a certain limit till December 30, 2016 following which they would become completely illegal.

As per latest, individuals can withdraw up to Rs 24,000 per week or Rs 2,500 per day while the exchange of old notes over the counter has been completely banned. Customers can, however, exchange old notes at the RBI over-the-counter desk.

And even as the window for depositing demonetised notes ends on December 30, the restrictions on cash withdrawal from banks and automated teller machines (ATMs) are expected to continue for a little longer.

As for deposits, the RBI clarified that no questions would be asked either in case of one-time or repeat deposits if the accounts are KYC-compliant in case of deposits over Rs 5000.