The Cabinet approved promulgation of an Ordinance to make possession of a large number of scrapped banknotes a penal offence making holding of old 1,000 and 500 rupee notes after March 31st beyond a threshold amount a criminal offence.<br/><br/>The possession will attract a monetary fine of 10,000 rupees or five times the cash held, whichever is higher. The Specified Bank Notes Cessation of Liabilities Ordinance also provides for amending the Reserve Bank of India Act to provide legislative support for scrapping the demonetised banknotes that are not returned.<br/><br/>Sources said the legal amendments are needed every time the government decides to scrap any legal tender to put an end to its promissory note. A maximum of 10 banned notes may be allowed to be held by any person.<br/><br/>The last date for depositing old currency notes in bank accounts and post offices is expiring on Friday and thereafter, people can deposit such notes only in RBI after giving valid reason for being unable to do so during the 50 day period. Furnishing wrong information while depositing the old currency between January 1 and March 31 will attract a fine of 5,000 rupees or five times the amount.<br/><br/>Sources said the proposal was for a four-year jail term for anyone possessing a number of demonetised currency after March 31 next year, but it could not be ascertained whether it has been approved.<br/><br/>The Ordinance will come into force once it gets Presidential assent. Of the 15.4 lakh crore rupees worth of currency that was scrapped, about 14 lakh crore rupees have been deposited in banks or exchanged.