Ordinance will make possession of old Rs 500, 1,000 notes criminal offence

The ordinance also seeks to extinguish the liability of the govt towards bearers of such note

An ordinance was approved by the cabinet on Wednesday to term as illegal the possession of demonetised Rs 500 and Rs 1,000 notes beyond March 31, 2017, and hold as criminal offence people contravening its provisions.

The ordinance, approved by the cabinet meeting chaired by Prime Minister Narendra Modi, also seeks to extinguish the liability of the government towards bearers of such notes. People can deposit old notes in banks up to December 30 and with the Reserve Bank of India up to March 31 next year.

Official sources said the ordinance -- called "The Specified Bank Notes Cessation of Liabilities Ordinance" -- will be sent to President Pranab Mukherjee, currently in Hyderabad, for approval before notification.