Sunday, 1 January 2017

Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016

The Government has issued the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 clarifying the extinguishment of RBI’s liability towards these SBNs, and penalises ‘holding, transferring and receiving’ of the SBNs, beyond a certain threshold, during this interim period of transfer.
The Ordinance has made the holding of more than ten old currency notes, an offence punishable by a fine of fifty thousand rupees or five times the face value of the notes held.
Under the Ordinance any citizen of India who was outside India between 9th November 2016 and 30th December 2016 or other class of persons were given time period till 31st December 2016. However vide its subsequent notification the Ministry has extended the time for Indian citizens who is a resident in India till 31st March 2017 and who is not a resident in India till 30th June 2017. 

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