The Union Cabinet headed by Prime Minister Narendra Modi on Wednesday promulgation of an ordinance to penalise persons holding junked Rs 500, 1,000 notes. Promulgation of the ordinance approved to impose a penalty, including a jail term, for possession of the scrapped 500 and 1,000 rupee notes beyond a cut-off.

The Cabinet also approved an ordinance to amend the RBI Act to extinguish the liability of the government and the central bank on the demonetised high-denomination notes to prevent future litigations.