Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 objectives
Q. Which of the following is/are true regarding Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016?
1) As per the ordinance even holding old 500 and 100 notes is illegal.
2) Transacting with banned notes will attract fine 5 times the amount of the face value of the notes.- Published on 02 Jan 17
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
ANSWER: Both 1 and 2
The main objectives of the Ordinance are
(i) to provide clarity and finality to the liability of the Reserve Bank of India and the Government of India for the Specified Bank Notes (SBNs);
(ii) to provide an opportunity to those persons who were unable to deposit the SBNs within the time provided; and
(iii) to declare holding, transferring or receiving SBNs as illegal, with provisions for penalty for contravention of any of the provisions of the Ordinance.
Further, to prevent any continued parallel transactions with the SBNs by unscrupulous elements, after this period, holding, transferring and receiving SBNs will attract a fine of Rs.10,000 or five times the amount of the face value of the SBN involved in the contravention, whichever is higher.