New Delhi, Dec 28: 48 days after demonetisation drive, the government today has announced a note ban Ordinance under which penalties may be imposed on anyone holding more than 10 notes each of the old currency after March 31. As per new directive by the government, there will be 4-year jail for anyone possessing old notes post March 31, 2017. Also, those involved in transactions of old, banned notes will have to pay a penalty of Rs 5000. India Today report stated that the norms will however, come into effect from January.

As the deadline to deposit old notes near, the government’s new ordinance says possessing, transferring or receiving an amount of over Rs. 10,000 in banned 500 and 1,000-rupee notes will be a punishable offence. As per sources, the maximum number of banned notes that a person can have is 10. The government has asked people to deposit their unaccounted wealth in old notes and pay 50 per cent in tax and penalty. Once caught, the person will pay almost 90 per cent of the amount they have.

As per PTI report, the Cabinet headed by Prime Minister Narendra Modi also approved an ordinance to amend the RBI Act to extinguish the liability of the government and the central bank on the demonetised high-denomination notes to prevent future litigations. As per RBI data, banks provided only Rs 5.92 lakh crore to the public either over the counter or through ATMs from November 10 to December 19.

There is no relief in the December 30 deadline for deposits of old notes. As per sources to NDTV, a fine of a minimum of Rs. 50,000 or five times the amount in question is likely.   After December 30, banned notes have to be directly deposited in the Reserve Bank of India or RBI and a grace period will be specified later.(ALSO READ: Demonetisation woes: Restrictions on cash withdrawal should continue after Dec 30, banks tell govt)

Prime Minister Narendra Modi sent shock waves across the nation when he made a surprise announcement of scrapping the Rs 500 and Rs 1000 notes on November 8. This drive by the Prime Minister is to curb the menace of black money, money laundering and counterfeiting of notes. The RBI in its statement said that this move took out 86 per cent of money in circulation or Rs. 15.44 lakh crore and more than 13 lakh crores in old notes has already returned to the banking system in deposits.