Union Government Notifies Specified Bank Notes (Cessation of Liabilities) Act, 2017 (Download PDF)

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Union Government has notified Specified Bank Notes (Cessation of Liabilities) Act, 2017. This law makes custody of more than an exact number of the old ₹ 500 and ₹ 1,000 notes a criminal affair. This Act is provided in the public interest for the cessation of liabilities on the specified banknotes.

The Specified Bank Notes (Cessation of Liabilities) Act, 2017
  • Recommendations of the RBI՚s central board to eliminate:
    • Unaccounted money
    • Fake currency notes from the financial system

This Act was passed by Parliament in February 2017. It received approval of President Pranab Mukherjee on 27 February 2017.

Highlights:

  • Holding more than 10 pieces of old notes by individuals is prohibited.
  • The limit is enhanced to 25 pieces for study, research, or numismatics.
  • Court of a Magistrate of the first class or the court of Metropolitan Magistrate can impose a fine for contravention of the provisions of this Act.
  • Section 7 states that whoever contravenes the provisions of section 5 shall be punishable with fine which may extend to ten thousand rupees or five times the amount of the face value of the specified bank notes involved in the contravention, whichever is higher
  • The Act also states that, whoever knowingly and willfully makes any declaration or statement specified under sub-section (1) of section 4, which is false in material particulars, or omits to make a material statement, or makes a statement which he does not believe to be true, shall be punishable with fine which may extend to fifty thousand rupees or five times the amount of the face value of the specified bank notes tendered, whichever is higher.

- Published/Last Modified on: March 16, 2017

Policy/Governance

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