The Central Cabinet on Wednesday approved an ordinance which makes possession of the demonetized Rs. 500 and Rs. 1,000 notes beyond March 31, 2017, illegal, making it punishable by Law.
People can deposit old notes in banks up to December 30, and with the Reserve Bank of India up to March 31, 2017.
As per reports, the ordinance - Specified Bank Notes Cessation of Liabilities - will be sent to President Pranab Mukherjee, currently in Hyderabad, for approval. The ordinance, approved during the Cabinet meeting chaired by Prime Minister Narendra Modi, seeks to amend the Reserve Bank of India Act, aimed at extinguishing the liability of the Central government towards the bearers of old notes.
Reacting to the developments, CPI(M) General Secretary Sitaram Yechury said that the government chose the "back door" ordnance method to bring in law. "We are against the 'ordinance raj'," he said.
"The ordinance primarily seeks to shield the government against future litigations that may follow for not honouring the promise to pay," another senior official said.
The social media was bombarded with mixed extreme reactions. The law to arrest people possessing old notes seems to have triggered widespread dissent. However, the ordinance makes it clear that collection of old notes up to ten in number will not invite prosecution.