Possession of more than 10 junked notes to attract fine

Keeping 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 become a law, official sources said.

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

It prohibits holding of more than 10 notes in total, irrespective of the denomination after the expiry of the 50-day deadline on December 30 for depositing the junked currency in banks or post offices.

However, holding of up to 25 notes is provided for “the purposes of study, research or numismatics”. Violation is “punishable with a 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”.