In a sudden change of rules, the government of rules, the government on Monday said that people can now deposit more than Rs 500 and 1000 notes can be made only per account until December 30.
However, there is no limit on the value of deposits of new bank notes also called specified bank notes under the taxation and investment Regime for Pradhan Mantri Garib Kalyan Yojana (PMGKY) 2016.
This is a sharp contrast to earlier statements from top central ministers and government officials which in initial days of demonetization was asking people not to queue up before banks as they have time until December 30 to deposit their old 500 and 100 currency.
More over a person who now wishes to deposit over 5000 demonetised notes in his or her bank account will be grilled by bank officials as per new directions by RBI. “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 explanation should be kept on record to facilitate an audit trail at a later stage said by RBI”
It said that an appropriate flag also should be raised in central banking a system to that effect so that no more deposit are allowed. “Demonetised currency less than 5000 will be allowed to be credited to bank accounts in the normal course until December 30, 2016.
“However when cumulative these small deposit breach 5000 caps, then the further deposit will to be scrutinized by bank officials and no more deposits will be accepted.
RBI said “even when tenders smaller than 5000are made in an account and such tenders took together on cumulative basis exceed 5000 they may be subject to the procedure to be followed in case of tenders above 5000 with no more tenders being allowed thereafter December 30, 2016.
while deposits more than 5000 in new notes will be allowed, they will be credited only to KYC-compliant accounts, the RBI said. If accounts are not KYC compliant these deposits may be restricted up to RS 50,000. These restrictions however, won’t apply to deposit of new notes under the taxation and investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.
As for deposits of new notes into third-party account, that will be allowed as long as specific authorization is provided by the third party to the bank.
The RBI is expected to issue more guidelines later this evening towards maintaining strict scrutiny of deposits of more than RS 5000.