On Wednesday, demonetisation ordinance was passed by the Cabinet. This ordinance was primarily a requisite to shroud the responsiobility of RBI in the the scrapping of higher-denomination notes.
According to what is being said, this decision will most likely not affect both the government and the Aam Aadmi. This is substantiated by the fact that 90% of the demonetized money has already come back to the system. This ordinance is mainly focused on compelling the wrong-doers and black money holders to come clean.
According to the ordinance, named the Specified Bank Notes Cessation of Liabilities Ordinance, anyone holding the scrapped notes after 31 March deadline would be a held as a criminal offender that can attract a penalty, including a jail term, for possession of the scrapped 500 and 1,000 rupee notes.
The cabinet also approved the decision to extinguish the liability of the government and the central bank on the demonetised high-denomination notes to prevent future litigations.
The ordinance also reaffirms that there is no reason to worry for the Aam-Aadmi. All the illegal tender notes have been deposited into the system from Nov10 onwards. But here are still black-money holders which have not yet unearthed their cash and deposited it into the banks. An apocalyptic situation for all those who haven’t yet come clean.
As per reports, out of 15.4 lakh of scrapped currency, 14 lakh have already returned to the system.
Also, people can deposit whatever money remaining with them in banned currencies in bank branches till 30 December. Even after that, there is a window at designated RBI branches until 31 March. Only those with unaccounted cash with them needs to worry since depositing money at RBI counters will attract tighter scrutiny.
For if the Ordinance was not passed, RBI would be in a position to hold back any person carrying an old Rs.500, Rs.1000 note, since it will continue to remain as legal tender.
Similar ordinance was passed in 1978 to extinguish government’s liability after Rs 1,000, Rs 5,000 and Rs 10,000 notes were demonetised by the Janata Party government under Morarji Desai.
