NEW DELHI: The ordinance to extinguish the Reserve Bank of India’s liability in respect of cancelled Rs 500 and Rs 1,000 notes will come into force from December 31, prescribing penalty for anyone found to be holding and or dealing in these notes beyond a threshold.
President Pranab Mukherjee signed the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 on Friday. “After the period of exchange is over, the liabilities of the Reserve Bank and the guarantee of the central government towards the specified bank notes will stand extinguished,” finance ministry said in a statement.
The ordinance also provides an opportunity to those persons who were unable to deposit demonetised notes within time provided to deposit the same with the RBI.
Indian citizens who were outside India from November 9 to December 30 can tender cancelled notes at the specified offices of RBI till March 31, 2017. For those citizens of India who are not resident in India, this facility would be available till June 30, 2017 in order to allow them adequate time to plan a visit as per their convenience, the statement said.
This facility is subject to the Foreign Exchange Management (Export and Import of Currency) Regulations, 2015, which puts Rs 25,000/- per person limit on anyone bringing money into India.
The details of the currency will have to be declared to customs authorities at airport by such declarants.
The government had on November 8 declared that old Rs 500 and Rs 1,000 notes had ceased to be a legal tender. Any person aggrieved by the RBI will be able to give a representation to central board within 14 days.
A wrong declaration would invite fine of Rs 50,000 or five times the seized amount, whichever is higher as per the ordinance.
Not more than 10 notes of demonetised currency can be held after December 30, which will invite a fine of Rs 10,000 or five times the amount sized.
Source: economictimes.indiatimes.com