The union government has notified ‘The Specified Bank Notes (Cessation of Liabilities) Act 2017’.
With the law coming into force, possession of more than 10 pieces of the old notes by individuals and more than 25 pieces for study, research or numismatics purpose will be a criminal offence, attracting fine of Rs 10,000 or five times the cash held, whichever is higher.
The law also provides for a minimum fine Rs 50,000 for false declaration by persons who were abroad during the demonetisation period (November 9-December 30, 2016) and given time to deposit such scrapped notes with RBI till March 31.
The Act also ends the liability of the Reserve Bank and the government on the demonetised currency notes.
Act was passed by Parliament in February 2017 with a view to eliminating the “possibility of running a parallel economy” using the old Rs 500/1,000 notes that have been demonetised.