The Modi government is planning to bring a fresh law under which possessing, sending or receiving an amount of over ₹10,000 in scrapped ₹500 and ₹1,000-rupee notes will be a punishable offence. The maximum number of scrapped notes that a person will be permissible to have of any denomination, is 10.
According to sources, the ordinance has to be passed before December 30 – the deadline for people to deposit old currencies in their bank accounts.
Notably, there will be a strict punishment for breaking the proposed law. The punishment is still being considered. As per the sources, a fine of a minimum of ₹50,000 or five times the amount in question is likely to be the punishment as breaking this proposed law.
There will be a criminal liability. A municipal magistrate will listen to these cases involving violation and decide on penalty.
The draft ordinance comprises recommendations of the central board of directors of the Reserve Bank.
Post December 30, scrapped notes will be directly deposited in the Reserve Bank of India. The RBI will specify the grace period later.
