Demonetisation: Today is the last day to deposit old Rs 500, Rs 1,000 notes

New Delhi: As the 50-day deadline for completion of demonetisation process draws near, people have just Friday to deposit old Rs 500, Rs 1,000 notes, pinning their hope on an extension of the date.

While many expect the government to extend the deadline of December 30 for deposit of invalid Rs 500 and Rs 1,000 notes, the government has time and again reiterated that it has no plans to do the same.

The government had on November 8 demonetised 500 and 1,000 rupee notes and asked the holders of such notes to either deposit them or exchange in banks between November 9 and December 30. Through this, it has taken out 86 percent of the currency out of the market.

Lately, the run for the cash seems to have eased slightly in the country as shorter queues could now be seen outside ATMs and banks.

With nearly Rs 14 lakh crore out of the Rs 15.4 lakh crore worth of 500 and 1000 rupee junked already deposited in banks, the expectation that RBI will be able to give a substantial dividend to the government, seems to be a contradictory proposition, a news paper has reported.

As per a report in the Times of India,  the deposit to the tune of lakhs of crore only indicate that “ways were found to deposit unaccounted money”. Meanwhile the government expects to “gain tax revenues from large deposits above the prescribed Rs 2.5 lakh per individual limit.” it added.

TOI further states that the government sees gains from small savings that were “kept in households being deposited in bank accounts that make these funds productive and safe.”

Meanwhile, two days before the deadline for depositing old 500 and 1,000 rupee notes expires, the Cabinet yesterday approved promulgation of an Ordinance to make possession of a large number of scrapped banknotes a penal offence that will attract monetary fine.

The Specified Bank Notes Cessation of Liabilities Ordinance makes holding of old 1,000 and 500 rupee notes after March 31 beyond a threshold amount a criminal offence that will attract a monetary fine of Rs 10,000 or five times the cash held, whichever is higher.