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Old Rs 500, Rs 1,000 banknotes over Rs 5,000 can now be deposited only once per account till Dec 30

The Ministry Of Finance On Monday Issued A Guideline Saying The Old Currency Of Rs 500 And Rs 1000 In Excess Of Rs 5000 Will Be Deposited Into Bank Accounts Only Once During Remaining Period Till December 30 This Year

News Nation Bureau | Edited By : Saurabh Kumar | Updated on: 19 Dec 2016, 02:31:13 PM
Reserve Bank of India (Pic: Getty)

New Delhi:

The Ministry of Finance on Monday issued a guideline saying the old currency of Rs 500 and Rs 1,000 in excess of Rs 5000 will be deposited into bank accounts only once during remaining period till December 30 this year.

Credit in such cases will be afforded only after questioning tenderer as to why this couldn't b deposited earlier and receiving a satisfactory explanation from him/her.

The Reserve Bank of India (RBI) on Monday said that it may also be ensured that full value of tenders of SBNs in excess of Rs 5000 shall be credited to only KYC (Know Your Customer) compliant accounts.

The RBI said: "If accounts are not KYC compliant, credits may be restricted up to Rs 50,000 subject to conditions governing the conduct of such accounts."

Few points from the RBI guidelines issued on Monday - 

1. It has been decided to place certain restrictions on deposits of SBNs into bank accounts while encouraging the deposits of the same under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016:

2. Tenders of SBNs in excess of Rs 5000 into a bank account will be received for credit only once during the remaining period till December 30, 2016. 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. 

3. The explanation should be kept on record to facilitate an audit trail at a later stage. An appropriate flag also should be raised in CBS to that effect so that no more tenders are allowed.

4. Tenders of SBNs up to Rs 5,000 in value received across the counter will allowed to be credited to bank accounts in the normal course until December 30, 2016. Even when tenders smaller than Rs 5000 are made in an account and such tenders taken together on cumulative basis exceed Rs 5000 they may be subject to the procedure to be followed in case of tenders above Rs 5000, with no more tenders being allowed thereafter until December 30, 2016.

5. It may also be ensured that full value of tenders of SBNs in excess of Rs 5,000 shall be credited to only KYC compliant accounts and if the accounts are not KYC compliant credits may be restricted up to Rs 50,000 subject to the conditions governing the conduct of such accounts.

6. The above restrictions shall not apply to tenders of SBNs for the purpose of deposits under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.

7. The equivalent value of specified bank notes tendered may be credited to an account maintained by the tenderer at any bank in accordance with standard banking procedure and on production of valid proof of Identity.

8. The equivalent value of specified bank notes tendered may be credited to a third party account, provided specific authorisation therefor accorded by the third party is presented to the bank, following standard banking procedure and on production of valid proof of identity of the person actually tendering.

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First Published : 19 Dec 2016, 12:51:00 PM

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