Ordinance on demonetisation: No jail term for holding old notes; minimum fine to be Rs 10,000

New Delhi: The Ordinance approved by the Union Cabinet on Wednesday to make holding of old 1,000 and 500 rupee notes after March 31 beyond a threshold amount a criminal offence will attract a minimum monetary fine of Rs 10,000, as per media reports.

It will be effective from December 31.

Proposal of four-year jail term for anyone possessing a number of demonetised currency after March 31, 2017 was not incorporated in the Ordinance.

The Ordinance will have to sent to the President and after his assent will come into force.

The Ordinance provides for amending the Reserve Bank of India (RBI) Act to provide legislative support for extinguishing the demonetised banknotes that are not returned.

The 50-day window for depositing the old notes in bank accounts and post offices expires tomorrow ( December 30).

While announcing the demonetisation of the old currency on November 8, the government had allowed holders to either exchange them or deposit in bank and post office accounts. While the facility to exchange the old notes has since been withdrawn, depositors have time till Friday to deposit the holding in their accounts.

Deposit with specified branches of RBI is allowed till March 31, but only for exigencies.

In 1978, a similar Ordinance was issued to end the government's liability after Rs 1,000, Rs 5,000 and Rs 10,000 notes were demonetised by the Morarji Desai-led government.