An ordinance to penalise persons with old notes post March 31 was today passed by the Union Cabinet chaired by PM Narendra Modi.
An ordinance to penalise persons with old notes post March 31 was today passed by the Union Cabinet chaired by PM Narendra Modi. While announcing the demonetisation of the old currency on November 8, the government had allowed holders to either exchange them or deposit in bank and post office accounts. While the facility to exchange the old notes has since been withdrawn, depositors have time till Friday to deposit the holding in their accounts. Meanwhile, road connectivity project for left wing extremism affected region was also approved by CCEA. We take a look at some decisions that the Cabinet took:
1) Cabinet clears ordinance to penalise persons with old notes: The Cabinet today approved promulgation of an ordinance to impose a penalty, including a jail term, for possession of the scrapped 500 and 1,000 rupee notes beyond a cut-off. The Cabinet headed by Prime Minister Narendra Modi also approved an ordinance to amend the RBI Act to extinguish the liability of the government and the central bank on the demonetised high-denomination notes to prevent future litigations. The penalty for holding old currency in excess of 10 notes may include financial fines and a jail term of up to 4 years in certain cases.
2) Cabinet approves Road Connectivity Project for left-wing extremism affected areas: CCEA approved a centrally sponsored scheme namely “Road Connectivity Project for Left Wing Extremism (LWE) Affected Areas” to improve the rural road connectivity in the worst LWE affected districts from security angle. The project will be implemented as a vertical under Pradhan Mantri Gram Sadak Yojana (PMGSY) to provide connectivity with necessary culverts and cross-drainage structures in 44 worst affected LWE districts and adjoining districts, critical from security and communication point of view. The roads will be operable throughout the year irrespective of all weather conditions. Under the project, construction/upgradation of 5,411.81 km road and 126 bridges/Cross Drainage works will be taken up at an estimated cost of Rs.11,724.53 crore in the above district.
3) Cabinet approves closure of state-run Tyre Corporation of India