The apex court said that the government should file an affidavit by April 11 explaining the reason why the window was not created for the people having difficulty and the chance was only given to NRIs and the citizens who travelled abroad.
Non-Resident Indians and Indian nationals abroad can deposit up to Rs 25,000 of the demonetised currency during the 3-6 month grace period, but only if they show the junked notes to Customs officials at the airport and get a declaration form stamped.
"There can be a situation where a person has lost his/her money for no fault," SC said.
The 50-day window for depositing the old notes in bank accounts and post offices expires on Friday.
The cabinet also approved ordinance to amend the RBI Act to extinguish the liability on the old notes.
While the central bank had publicly cited only Rs 15.55 trillion of high value notes were cancelled, in an RTI reply to PTI, it had said the actual quantum of bills cancelled was much higher at Rs 20.51 trillion.
Centre says the very object of demonetisation and elimination of black money will be defeated if a fresh window is given.