Allow one more chance to deposit old notes

Randall Padilla
July 5, 2017

While hearing the petition regarding the old note exchange deadline for the people, the Supreme Court has reproached Reserve Bank of India and asked whether people who could not deposit their hard earned demonetised money before 31ST December 2016, could be given a chance to exchange the old currency with new.

On November 8 previous year, Prime Minister Narendra Modi had announced that Rs 500 and Rs 1,000 notes would be scrapped from the next day.

The applicants have sought directions from the apex court to the Centre to allow people to deposit old currency notes of Rs 500 and 1,000. A bench, headed by Chief Justice JS Khehar, asked Solicitor General Ranjit Kumar, representing the Centre, to take instructions on the issue.

The court said that if a person could prove that the money was his/hers and there was real difficulty in depositing the money before December 31, then a second chance must be given.

The top court has pulled up both the RBI and the Centre.

Noting the government can not seek to deny its citizens of their own property, SC said it is a serious issue if people with bonafide reasons are denied another chance. As per the rule, if the people who couldn't depsit the old notes in banks could still do it till March 31, 2017 at RBI branches.

Following the announcement of demonetizing currency notes worth Rs. 500 and 1,000 in November previous year, the Government had instructed people to deposit their old currency notes with the RBI till December 30, 2016.

The notes were demonetisied on November 8.

On March 10, it sought replies from the Centre and RBI on the plea against tweaking of rules on exchange of demonetised currency.

For one, the government stands on a strong legal ground here, after the passage of the Specified Bank Notes Bill in February, which ended the liability of these currency denominations between the RBI and the government.

Naturally, it's not possible for those who are old and infirm, those who are away from the country, those who are indisposed, or simply far removed to have received the government communication, to exchange the old notes by the stipulated deadline.

The Centre had come out with the Ordinance making possession of a large number of scrapped notes a penal offence attracting a monetary fine.

Other reports by AllAboutTopnews

Discuss This Article