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Published: Fri, July 07, 2017
Economy | By Melissa Porter

There Can Be A Window To Deposit People's Hard Earned Money-SC

There Can Be A Window To Deposit People's Hard Earned Money-SC

After the Reserve Bank Of India closed the window for exchange of the note, Supreme Court asked the Government today to provide a grace time period to those people who couldn't deposit or exchange the 500 and 1000 Rs. notes in banks due to genuine reasons. The deadline for non-resident Indians was extended to 30 June.

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. "What if someone is terminally ill and couldn't deposit the money?" asked the court.

The Ordinance said only those who were overseas, armed forces' personnel posted in remote areas or others who could give valid reasons for not being able to deposit the cancelled notes at banks could deposit demonetised notes till March 31 this year after the deadline expired on December 30, 2016.

In its response, the Central government has said that it will file an affidavit in the case. The Supreme Court has given the Narendra Modi government and the RBI two weeks' time to come up with alternatives to the issue.

They alleged that the Specified Bank Notes (Cessation of Liabilities) Ordinance, promulgated on December 13, 2016, penalised those who deposited demonetised money after December 31, 2016.

The court further said that the government cannot take that money away if the person could not deposit the money and justifies that "under no circumstance could he have deposited them".

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The demonetisation of Rs 500 and Rs 1,000 notes in November 2016 had caused a cash crunch in the country as the bills had made up almost 86% of the currency in circulation then.

Supreme Court on Tuesday threw light in the dark for those who failed to exchange demonetised notes within December 30, 2016 deadline. Last month, banks and post offices were given a month to deposit the old, big banknotes that they had received with the RBI, provided they had been collected before December 30. It was also announced that those who fail to deposit or exchange scrapped currency by the year-end deadline will be able to do so at RBI branches till March 31, 2017.

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

The Central government had previous year taken the decision to demonetise old notes of higher denomination in order to curb black money.

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