New Delhi: Finance Minister Arun Jaitley yesterday introduced a bill on demonetisation in the Lok Sabha to formally make the banning of `500 and `1,000 notes a law.
The Specified Bank Notes (Cessation of Liabilities) Bill, 2017, seeks to replace the ordinance on demonetisation promulgated by the government in December 2016.
The bill provides that the specified bank notes, which have ceased to be legal tender, shall "cease to be liability of Reserve Bank of India".
It prohibits the holding, transferring or receiving of the 'specified bank notes' after December 31, 2016. "On and from the appointed day, no person shall, knowingly or unknowingly or voluntarily hold, transfer or receive any specified bank notes," the bill said.
As per the bill, an individual cannot hold more than 10 of the demonetised currency notes irrespective of value, and for the purpose of study or research, not more than 25 notes can be held.
For the violations of these provisions in the Section 5 of the bill, a fine will be imposed which can be of Rs 10,000 or five times the amount of the old currency notes held - whichever of the two is higher.
Those individuals who were outside India during November 9 to December 31, or have some other genuine reason, can make a declaration which will be verified by the Reserve Bank of India. If the RBI is satisfied with the reason cited it may credit the value of the old bank notes in the individual's "Know Your Customer compliant bank account".
Anyone aggrieved by RBI's refusal to credit the value of old notes may approach Central Board of the Reserve Bank within 14 days of communication of refusal.
Citing a false statement under this provision would be fined upto `50,000 or five times the amount of bank notes tendered, whichever is higher.
In the Lok Sabha on Friday, as the Finance Minister stood up to introduce the bill, he was opposed by Trinamool Congress member Saugata Roy, who termed the bill "illegal".
A war of words was witnessed in the House as Jaitley and the Trinamool Congress leader attacked each other over the issue.
Roy said he was questioning Jaitley's "right to speak", adding "Let him go to the Rajya Sabha and speak".
