Legal Question in Banking Law in India

11.01.2017

Dear Sir / Madam,

The demonitization of Rs. 500/- and Rs. 1,000/- old notes in the country started on the midnight of 08.11.2016 and ended on the midnight of 28.12.2016 (50 days) and were replaced with new Rs. 500/- denomination notes and Rs. 2,000/- denomination notes. It is already over now. A cash transaction is based on mutual trust, as in any cash transaction, there is no record of the date when the cash was given and when it returned back in cash there is no record of the date when it was returned. Even it you take a video or snapshot of the actual giving and taking of cash, the date on the photograph or video will only reflect the date that is on the recording camera, which may or may not be the actual date. Giving and taking of cash on loan is not illegal, but in the event of any dispute or difference of opinion in this transaction as regards principal and / or interest repayment and settlement between your friend and the loaner, Police action is advisable and recommended, not the Court.

Regards,