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Why old notes not being accepted till March 31: SC asks RBI, FinMin

Asks why old notes are not being accepted till March 31 as promised

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The order dated December 30 stated only NRIs can deposit old currency till March 30
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Sarla Srivastava, 71, lost her husband in April 2016, a few months before Prime Minister Narendra Modi demonetized Rs 500 and Rs 1,000 notes. After poring over her savings, Srivastava managed to deposit Rs 1,90,000 in the bank. Later, in January this year, she came across another Rs 1,79,500 her husband had saved in a steel trunk. The banks, however, turned the Bilaspur resident back saying she has missed the revised deadline for depositing old currency.

Sudha Misra, who gave birth to twin girls in November last year, was so preoccupied with her babies, born pre-maturely through Caesarean, that she too missed the RBI deadline. Though married in Delhi, the new mother had gone to her parents' house in Ranchi, Jharkand for delivery. Once she returned, she found that she no longer could deposit the money she got during her wedding in her account.

Same was the case with Victory Logitrans Pvt Ltd, a Karnataka-based firm, which was unable to deposit almost Rs 66 lakh before December 31.

Hearing a batch of petitions, the Supreme Court issued a notice to the Centre and the RBI asking them why citizens were not allowed to deposit their old currency till March 31 as promised by the Prime Minister in his November 8, 2016 address to the nation.

In his speech, Modi had given citizens a deadline till March 31 to deposit their old notes. However, in an ordinance dated December 30, only Non-resident Indians (NRI) and those who were traveling abroad were given an extension till March 30.

A bench led by Chief Justice JS Khehar and comprising of Justices DY Chandrachud and Sanjay Kisan Kaul considered a submission that the RBI's December 30 ordinance was a breach of promise on part of the Prime Minister.

"The ordinance was issued one day before the deadline to deposit money," said Sudiep Srivastava, the advocate representing his mother Sarla. "That gave my mother hardly enough time to deposit the money on December 31," he added.

Sudiep and the other lawyers have similarly prayed for a direction from the top court allowing the petitioners to deposit their money till March 31.

The Finance Ministry and the RBI are directed to file their responses before Friday, when the matter will be heard next.

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