Govt not to extend December 30 deadline for depositing old notes; says RBI, banks have enough cash

"There is sufficient cash available with the Reserve Bank of India and banks. Circulation of notes in respect of Rs 100 has already been increased," Minister of State for Finance Arjun Ram Meghwal said.

Zee Media Bureau

New Delhi: The government is not planning to grant any extension to the December 30 deadline for depositing invalid notes.

Minister of State for Finance Arjun Ram Meghwal told the Rajya Sabha in a written reply. 

"There is sufficient cash available with the Reserve Bank of India and banks. Circulation of notes in respect of Rs 100 has already been increased," said Meghwal in a written reply. 

On whether the December 30 deadline will be extended, the Minister of State for Finance said, "No such proposal for extension of deadline beyond December 30, 2016, is presently under consideration of the government." 

He also added that to meet the cash crunch in rural areas, government has asked  banks to supply more of Rs 100 and less.

In a shock announcement on November 8, Prime Minister Narendra Modi had announced that Rs 500 and 1,000 banknotes were being withdrawn from circulation in a bid to crack down on corruption and counterfeit currency.

He had also announced December 30 as deadline to get the old currency exchanged for the new one. Post banning Rs 1,000 and Rs 500 notes, government also released Rs 2,000 notes and new currency notes of Rs 5,00.

The RBI has directed all banks that for depositing more than Rs 50,000 in cash, the bank account holder will need to submit a copy of the PAN card.

Banks and post offices will also have to report to the I-T Department all deposits above Rs 2.5 lakh in savings accounts, and more than Rs 12.50 lakh in current accounts, made till December 30.

Banks, co-operative banks and post offices will also have to report to the IT department all information on cash deposits exceeding Rs 50,000 in a single day or amounting to more than Rs 2.5 lakh during the period from November 9 to December 30, 2016. 

The government has also directed Banks, co-operative banks and post offices to report cash deposits during November 9 to December 30, 2016, aggregating to Rs 12.50 lakh or more, in one or more current account of a person.

The exchange of old Rs 500 and Rs 1,000 notes for new currency has been stopped at all banks from Thursday midnight, and will continue only at the Reserve Bank of India.

The Centre on Monday introduced a Bill in the Lok Sabha that proposes to gives tax defaulters an opportunity to come clean by paying tax and penalties.

The proposed amendment to the Income-Tax Act will impose 50 percent tax on undeclared income that is voluntarily disclosed till December 30, following which 82.5 percent (75 percent tax and 10 percent of such tax as penalty) could be levied on undeclared income detected by authorities.

The tax changes are intended to supplement the demonetisation move targeted at curbing black money, the Finance Ministry said in a statement.