The Union Government on 1 March 2017 notified the Specified Bank Notes (Cessation of Liabilities) Act, 2017. The Act is introduced in the public interest for the cessation of liabilities on the specified bank notes. Section 5 of the Act bars any person from knowingly or voluntarily, holding, transferring or receiving any specified bank note after the expiry of grace period.
However, a person can hold not more than ten notes in total, irrespective of the denomination. Up to twenty-five notes can be held, if it is for the purposes of study, research or numismatics. Section 7 of the Act states that whoever contravenes the provisions of Section 5 shall be punishable with fine, which may extend to ten thousand rupees or five times the amount of the face value of the specified bank notes involved in the contravention, whichever is higher.
The Act states that, whoever knowingly and wilfully makes any declaration or statement specified under Sub-Section (1) of Section 4, which is false in material particulars, or omits to make a material statement, or makes a statement which he does not believe to be true, shall be punishable with fine, which may extend to fifty thousand rupees or five times the amount of the face value of the specified bank notes tendered, whichever is higher. Court of a Magistrate of the First Class or the court of a Metropolitan Magistrate can impose a fine, for contravention of the provisions of this Act.