Union Govt introduces Demonetisation Bill in Lok Sabha

The Union Government on Friday introduced a bill in the Lok Sabha which provides for holding, transfer and receiving of old 500 and 1000 rupee notes a criminal offence.

Finance Minister Arun Jaitley moved the Specified Bank Notes (Cessation of Liabilities) Bill, 2017 in the Lower House. It seeks to end the liability of the Reserve Bank of India (RBI) and the government on the currency notes demonetised on November 08, 2016.

The Bill states that the government took the demonetisation decision on the recommendations of the RBI’s central board to eliminate unaccounted money and fake currency notes from the financial system.

Once passed by the Parliament, the Bill will replace an ordinance promulgated on December 30 last year which provides for a fine of 10 thousand rupees or five times the cash held, whichever is higher, on holding of more than 10 banned notes.

Apart from aiming at ceasing the liability on old notes, the bill also provides that an Indian citizen, who was outside the country between November 9 and December 30, will be entitled to tender the demonetised notes within the specified period.

Trinamool Congress leader Saugata Roy opposed the Bill saying that it is illegal. However, jaitley countered the allegation and cited the law under which the demonetisation notification was introduced following due process.