The Centre is considering an ordinance banning the possession of demonetised currency notes over Rs 10,000 in value, NDTV reported on Monday. It will make the processing, transferring or receiving an amount over Rs 10,000 in Rs 500 and Rs 1,000 notes a punishable offence, according to the report. The maximum number of discontinued notes that can be held by any person will also be capped at 10.
The executive order is likely to carry a fine of Rs 50,000 or five times the amount of money held by an individual – whichever is higher, the report said. Cases for violating the executive order will be heard by municipal magistrates. The ordinance also includes recommendations of the central board of the directors of the Reserve Bank of India, and may be issued before December 30, the deadline for the public to deposit old notes in their bank accounts.
If passed, the order will be the latest in a series of steps taken by the Narendra Modi-led government to press for the complete removal of the currency notes from the country’s economy. The demonetisation of the notes on November 8 had removed 86% of the cash in circulation in the country. On December 13, the RBI had said banks that had collected a total of Rs 12.44 lakh crore in demonetised notes between November 8 and December 10, while Rs 4.61 lakh crore had been issued in new currency during the same period.
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