New Delhi: The Centre has approved an ordinance that imposes penalties for possessing old notes beyond a certain limit and indulging in transactions with junked notes of Rs 500 and 1,000.
According to the ordinance anyone possessing old notes — Rs 500 and Rs 1000 — after March 31, 2017 will have to face four-year jail term and those involved in transactions have to pay a penalty of Rs 5000.
There will be a criminal liability and a municipal magistrate will hear cases involving violation and decide on penalty.
The draft ordinance includes recommendations of the central board of directors of the Reserve Bank. After December 30, banned notes have to be directly deposited in the Reserve Bank of India or RBI and a grace period will be specified later.