On and from the appointed day, no person shall, knowingly or voluntarily, hold, transfer or receive any specified bank note:

---

---

Provided that nothing contained in this section shall prohibit the holding of specified bank notes—

---

(a) by any person—

---

(i) up to the expiry of the grace period; or

---

(ii) after the expiry of the grace period,—

---

(A) not more than ten notes in total, irrespective of the denomination; or

---

(B) not more than twenty-five notes for the purposes of study, research or numismatics;

---

(b) by the Reserve Bank or its agencies, or any other person authorised by the Reserve Bank;

---

(c) by any person on the direction of a court in relation to any case pending in the court.

---

¹[(d) by the law enforcement agencies, such as the Central Board of Direct Taxes, Central Board of Indirect Taxes and Enforcement Directorate on production of the documents authorising such seizure or confiscation, as the case may be.]

---

(1) The Central Government may, by notification, make rules for carrying out the provisions of this Act.

---

(2) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

---