Any number of "benami" transactions and proxy users for the goal of producing and depositing the old notes would then arise and the departments would have great difficulty in deciding any genuine case from the numerous bogus ones, it said, and sought dismissal of petitions seeking another chance.
Different citizens' appeals were clubbed together by the Supreme Court - they included a woman who said she could not make it to a ban because she was delivering a baby and another who said her family was coping with a death in the family.
The Supreme Court referred to people, like those in prisons, can not be stopped from exchanging the old notes.
The Centre was responding to Chief Justice of India JS Khehar, who had observed on July 5, "If there is a genuine person, he should have the opportunity if he has failed to deposit for a valid reason".
Prime Minister Narendra Modi had surprised the nation on November 8 when he declared the old Rs 500 and 1000 notes invalid.
There have been instances earlier when the Chief Justice has asked the government to help genuine citizens. The deadline to deposit the bills at the Reserve Bank of India was March-end 2017.
The bench further said that the discretion vested in the government by the ordinance had been exercised arbitrarily to allow one category only when the law permits the government to extend the relief to other categories too.
However, the Ordinance issued on December 30, 2016 had specified that only those who were overseas or armed forces personnel posted in remote areas or others who could give valid reasons for not being able to deposit the cancelled notes at banks, could deposit the demonetised currency notes of Rs 500 and Rs 1,000 till March 31.
In a meeting with the parliamentary committee on Wednesday last week, RBI governor Urjit Patel said the number of scrapped notes returned post demonetisation were still being counted.
The government had assured the people that demonetised currency notes could be exchanged at banks, post offices and RBI branches till December 30, 2016. Patel did share some data but did not discuss the exact figures at the meet.
The Centre on Monday informed the Supreme Court that it will not offer any more chances to deposit or exchange demonetized notes to those who missed the December 30 deadline.