Possession of over 10 junked notes will now attract fine

Holding more than 10 notes of the junked Rs 500 and Rs 1,000 currency is now illegal, with a new law coming into effect after the President's assent

New Delhi: Holding more than 10 notes of the junked Rs 500 and Rs 1,000 currency is now illegal, with a new law coming into effect after the President's assent.

The Specified Bank Notes (Cessation of Liabilities) Bill, 2017, received the assent of the President on February 27 and has since then become a law, official sources said.

The legislation, which was passed by Parliament last month, makes holding, transfer, and receiving of the old 500 and 1,000 rupee notes a criminal offence. It also ends the liability of the Reserve Bank of India (RBI) and the government on the currency notes demonetised in November last year.

It prohibits holding of "more than 10 notes in total, irrespective of the denomination" after expiry of the 50-day deadline on December 30 for depositing junked currency in banks or post offices. Violation is "punishable with fine which may extend to Rs 10,000 or five times the amount of the face value of the specified bank notes involved in the contravention, whichever is higher".

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