The law regarding penalty for those in possession of old demonetized notes effective
Posted on: 02/Mar/2017 6:05:33 PM
The central government announced on 8th November 2016 that the old currency notes of Rs. 500 and Rs. 1000 will not be valid as a measure to smuggling and circulation of black money in the country.
The central government gave time for the public to exchange their notes till 30th December. The central government also announced that those who are found in possession of the invalid currency notes will be asked to pay penalty charges.
Accordingly, if a person is found in possession of more than 10 notes of the demonetized currency, and those who are numismatists or working in research on old currencies possessed more than 25 notes, they will be charged with a penalty of a minimum of Rs. 10000 or 5 times the value of their possession. Subsequently, the bill was passed as a Law in the parliament last month.
The President Approved the enactment of the Law (Particular Currency Notes (withdrawal) Act 2017). Following this, the central government has announced that this law regarding the penalty for possessing old demonetized currency notes is effective.
This Law enables the deposit of the old notes in the Reserve Bank of India and also enables the imposing of penalty charges for those who give misinformation.
