The President has approved the Promulgation of the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 which was expected as today 30th December was the last day of depositing the old Rs. 500 and 1000 notes. The decision to scrap the old notes was declared on 8th November.
Purpose of the Ordinance –
1. to provide clarity and finality to the liability of the Reserve Bank of India and the Government of India for the SBNs
2. to provide an opportunity to those persons who were unable to deposit the SBNs within the time provided
3. to declare holding, transferring or receiving SBNs as illegal, with provisions for penalty for contravention of any of the provisions of the Ordinance.
However there are some exceptions to the above ordinance –
1. Those citizens who were outside India from 9th November 2016 to 30th December 2016 will be allowed to deposit the old notes till 31st March, 2017.
2. Those citizens who are not resident in India been have given time till 30th June to deposit the old notes so that they can plan their travel date at their own convenience.
However the value of the old notes being brought back in India will be subject the provisions of Foreign Exchange Management (Export and Import of Currency) Regulations, 2015 which says that a maximum amount of Rs. 25,000 can be bought back per person. Also the declaration would be made to the Custom Authorities by Indian Citizens when they land in India.