The Specified Bank Notes (Cessation of Liabilities) Act, 2017

In force 13 sections Finance

An Act to provide in the public interest for the cessation of liabilities on the specified bank notes and for matters connected therewith or incidental thereto.

Act 2 of 2017 Enacted 27 Feb 2017 In force 31 Dec 2016 Department Department of Economic Affairs

Administered by. Ministry of Finance, Department of Economic Affairs · Other Acts of 2017

Preamble

THE SPECIFIED BANK NOTES (CESSATION OF LIABILITIES) ACT, 2017
ACT NO. 2 OF 2017
[27th February, 2017.] An Act to provide in the public interest for the cessation of liabilities on the specified bank notes and for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:---

What this Act covers

Summary of the Specified Bank Notes (Cessation of Liabilities) Act, 2017

*Act Name: Specified Bank Notes (Cessation of Liabilities) Act, 2017

*Enactment: By Parliament in the Sixty-eighth Year of the Republic of India

*Commencement: Deemed to have come into force on 31st December, 2016

*Primary Objective: To provide in the public interest for the cessation of liabilities on specified bank notes (₹500 and ₹1000 series existing on or before 8th November, 2016) and related matters.

Key Provisions

1. Cessation of Liability: - Specified bank notes ceased to be legal tender as per a notification dated 8th November, 2016.

• These notes ceased to be liabilities of the Reserve Bank of India and lost the guarantee of the Central Government from 31st December, 2016.

2. Exchange of Specified Bank Notes: - Eligible Persons:

• Citizens of India who were outside India between 9th November, 2016 to 30th December, 2016 (with conditions).

• Classes of persons specified by the Central Government for valid reasons.

• Process: Tender within a specified "grace period" with declarations/statements at designated Reserve Bank offices.

• Outcome for Genuine Cases: Value of notes credited to a Know Your Customer (KYC) compliant bank account after verification.

3. Prohibitions and Penalties: - Prohibition: Holding, transferring, or receiving specified bank notes after the appointed day, with exceptions (e.g., up to 10 notes in total for individuals, more for study/research/numismatics, and for authorized entities).

• Penalties:

• For false declarations under Section 4: Fine up to ₹50,000 or 5 times the face value of the notes, whichever is higher.

• For contravening Section 5 (holding/transferring/receiving beyond allowed limits): Fine up to ₹10,000 or 5 times the face value of the notes involved, whichever is higher.

4. Corporate Liability: - Companies found guilty under Sections 6 or 7, along with responsible directors/managers, are liable for punishment.

• Provision for appeal against the Reserve Bank's decisions.

Sections

Type to filter. 13 sections.

Rules made under this Act

3 sets of Rules. India Code publishes Rules as a record and a document rather than as text, so these are indexed here and not reproduced. All Rules.

Specified Bank Notes (Cessation of Liabilities) Removal of Difficulties Order, 20182018
Specified Bank Notes (Deposit by Banks, Post Offices and District Central Cooperative Banks) Rules, 2017.2017
Specified Bank Notes (Deposit of Confiscated Notes) Rules, 2017. (2017

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Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 13 sections of this Act has its own page. This page is not a substitute for legal advice.