SC wants govt to allow people with valid reasons to deposit old notes

The Supreme Court has asked the government and the Reserve bank of India to look for ways to give people with valid reasons another opportunity to deposit the now-defunct Rs1,000 and Rs500 currency notes in exchange of new banknotes.

Saying that the honest should not be made to suffer for reasons beyond their control, the apex court has asked the centre to mull over option to provide window to such people who could not deposit demonetised notes due to valid reasons.

"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.

The centre has sought 10 days time to reply while the SC has posted the case for hearing on 18 July.

Following the 8 November 2016 demonetisation of the old Rs1,000 and Rs500 currency notes, the government had given time till 30 December for deposit of these notes with banks.

People also had a chance to deposit old notes but only at RBI offices till March 31. They had to give a valid reason for missing the December 30 deadline.

For those who were abroad during this period and non-residents, the government had extended the time for depositing old currency. Since these have now ended, those who could not deposit these notes are holding on to their old currency stick.

The government has also given a last chance to district cooperative banks, commercial banks and post offices to deposit the invalid Rs500 and Rs1,000 notes with the Reserve Bank by 20 July, provided they were collected within the specified time period.