Demonetisation: SC asks RBI, govt to give one more chance to deposit old notes

Supreme Court on Tuesday ordered centre and the Reserve Bank of India to reopen the window for those who could not deposit their demonetized Rs 500 and Rs 1,000 currency notes for a compelling reason.

The apex court has given two weeks time to the central bank and the centre to consider the option of granting a window to deposit old notes. 

According to a report by PTI, a bench comprising Chief Justice J S Khehar and Justice D Y Chandrachud asked Solicitor General Ranjit Kumar, representing the Centre, to take instructions on the issue.

"There can be a situation where a person has lost his/her money for no fault. Suppose a person was in jail during the period... We want to know as to why you chose to bar such persons," the bench said.

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Prime Minister Narendra Modi on November 8 had announced the ban on old Rs 500 and Rs 1000 notes with immediate effect. PM Modi had said that Rs 500 and Rs 1000 notes will no longer be a "legal tender" from November 9.

The government had given 50 days time period to deposit old notes in the banks. The last day to deposit the money in banks was December 30, 2016. As per the rule, if the people who couldn't depsit the old notes in banks could still do it till March 31, 2017 at RBI branches. 

Now, the SC has ordered to open the deposit window once again for only those people depending on "case-by-case" basis. 

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As per the report by PTI, the bench was hearing a batch of petitions, including one filed by Sudha Mishra seeking a direction to authorities to allow her to deposit demonetised notes as she could not do so during the period specified by the Centre and the RBI.

Reportedly, on March 21, the apex court asked the government why it chose not to create a separate category for those who couldn't deposit demonetised notes by December 30, 2016 unlike NRIs and people who were abroad.

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The Centre informed the court that it had taken a "conscious decision" not to extend the period beyond December 30 last year for exchanging demonetised currency notes. It also said it was not legally bound to come out with a fresh notification to grant a grace period or a window for depositing scrapped currency notes.

The apex court had on March 6 sought responses of the Centre and RBI on why demonetised notes were not accepted till March 31 as was promised. On March 10, it sought replies from the Centre and RBI on the plea against tweaking of rules on exchange of demonetised currency.

But, there are few questions which needs an answer. For instance, the government passed an ordiance in December last year making it illegal for anyone to hold more than 10 Rs 1000 notes.

In that scenario, if the government allows people to deposit their old notes one more time, the law will have to be amended else everyone coming forward with their requests will be allegedly committing a crime punishable by offfence.