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A Look at What the New RBI Ordinance is all About

First published: December 28, 2016, 2:57 PM IST | Updated: 3 mins ago

Rs 500 old currency note. (File photo)

New Delhi: The Centre on Wednesday approved an ordinance that imposes penalties for possessing old notes beyond a certain limit and indulging in transactions with banned notes of Rs 500 and Rs 1000.

Here is a look at what the new ordinance is all about.

Why has the government introduced the new ordinance?

With the new ordinance, the government hopes to push people who still are holding on hordes of demonetised Rs 500 and Rs 1000 currency notes to deposit them into banks.

What will happen to people who possess demonetised notes after March 31st?

Post the new ordinance, if more than 10 old notes are found with anyone, they will automatically be punished with a four-year jail term and a fine of Rs 5000.

How will they deposit their money in the bank now?

They can deposit the money in banks till December 31. After that, they have time till March 31 to deposit their money with the RBI. ​