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Demonetisation : Indian Government plans law against transactions over Rs 10,000 in banned currency notes

Govt mulls law against transactions over Rs 10,000 in banned notes: report
Govt mulls law against transactions over Rs 10,000 in banned notes: report

Though punishment for breaking the proposed law has not been finalised, sources said there will be a fine of a minimum of Rs. 50,000 or five times the amount in question — whichever is higher.

The government is mulling a new law to make possessing, transferring or accepting an amount of over Rs. 10,000 in banned 500 and 1,000-rupee notes a punishable offence. According to an NDTV report, the government will soon come out with an ordinance to make a new law against such dealings. The reports says that maximum number of banned notes, of any denomination, that a person will be allowed to have is 10.

Though punishment for breaking the proposed law has not been finalised, sources said there will be a fine of a minimum of Rs. 50,000 or five times the amount in question — whichever is higher. The cases will be heard by municipal magistrate decide the penalty accordingly.

The draft ordinance includes recommendations of the central board of directors of the RBI. The grace period to deposit old notes in banks ends on December 30, after which the banned notes have to be directly deposited in the RBI.

To flush out black money, Prime Minister Narendra Modi had on November 8 banned 500 and 1,000-rupee notes.

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