RBI: Old currency worth more than ₹ 5000 can be deposited only once

RSTV Bureau

Indian_ currencyThe Reserve Bank of India (RBI) has imposed more restrictions on cash deposits in defunct currency notes of ₹ 500 and ₹ 1000. Those looking to deposit more than ₹ 5,000 in the old notes, can deposit only once in a particular account until December 30.

Not just that, people will also have to explain the deposit to bank officials and tell them why they hadn’t deposited the money earlier. An audit trail will also be created for a later stage.

“The credit in such cases shall be afforded only after questioning tenderer, on record, in the presence of at least two officials of the bank, as to why this could not be deposited earlier and receiving a satisfactory explanation,” the RBI notification said.

Even when deposits less than ₹ 5000 are made in an account but the cumulative deposits since November 8 exceed ₹ 5,000 it will invite scrutiny. The accounts must also be compliant with KYC, else deposits can be restricted to Rs 50,000.

“Even when tenders smaller than Rs 5,000 are made in an account and such tenders taken together on cumulative basis exceed Rs 5,000 they may be subject to the procedure to be followed in case of tenders above Rs 5,000, with no more tenders being allowed thereafter until December 30, 2016,” RBI’s notification said.

These curbs however are not applicable to the deposits for taxation under the Pradhan Mantri Garib Kalyan Yojana, 2016.

The Government maintains that RBI’s decision is aimed at discouraging a surge in deposits of unaccounted money in regular bank accounts.

At the time of demonetising the high-value bills, the government had said people should not panic and crowd banks as enough time to deposit or exchange money was assured.

On December 13, the RBI had announced that a total of Rs 12.44 lakh crore rupees in scrapped notes had been deposited. This is close to 80 percent of the currency that turned defunct after the demonetisation announcement.

(With inputs from PTI)