Notes Ban: Govt likely to come up with ordinance before Cabinet today
In an attempt to put an end to the liability of the government and the Reserve Bank of India (RBI) on the demonetised high value notes, the government is likely to come up with an ordinance before the Union Cabinet on Wednesday, PTI reported on Tuesday.
The ordinance is being brought as it was found to be necessary to prevent future litigations against the government for junking of Rs 500 and Rs 1,000 notes, cited the news report quoting sources from the government as stating.
In a surprise move to curb black money, corruption and terrorism, Prime Minister Narendra Modi on November 8 announced scrapping of old currency notes of Rs 500 and Rs 1,000 as legal tender from circulation.
The sources further said that in order to prevent harassment and any ambiguity, a provison would be added to ensure that certain category of people can still deposit the old notes in RBI branches between December 31 and March 31 next year.
The category may include people in armed forces, people who were abroad and ordinary citizens who can explain that the money is part of their legitimate income and they could not deposit it in banks due to some reasons, the report said.
According to the news report, the government is also mulling imposing penalty on people for possessing certain quantity of old notes after December 30 but there is no confirmation.
The government, while announcing demonetisation of high value currency notes in November this year, had given holders time to exchange or deposit their old currency notes of Rs 500 and Rs 1,000 at banks and post offices till December 30.
It has, however, withdrawn the facility to exchange old notes but depositors have time till this Friday to deposit old notes in their accounts.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.