The Reserve Bank of India (RBI) on Monday imposed new restrictions on the deposits of old ₹500 and ₹1,000 notes into the bank accounts. According to the RBI, the old notes above ₹5,000 can be deposited only once till December 30, 2016 – the deadline to deposit scrapped notes that too after explaining the reasons for not having done so far to the bank officials.
“Tenders of SBNs [specified bank notes] in excess of ₹5,000 into a bank account will be received for credit only once during the remaining period till December 30, 2016,” the RBI said in a notification.
When depositing, the RBI said, the depositors have to provide a clarification as to why the old notes were not deposited earlier. The money will be credited in the bank account only after receiving a reasonable explanation.
“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,” it said.
The RBI also said the explanation should be kept on record to facilitate an audit trail at a later stage. The RBI said the deposits above ₹5,000 can be credited only into KYC-compliant accounts.
“It may also be ensured that full value of tenders of SBNs in excess of ₹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,” it added.
However, old notes up to ₹5,000 received across the counter will permitted to be credited to bank accounts in the usual course until the deadline. Besides, the new changes shall not apply to deposits under the ‘Pradhan Mantri Garib Kalyan’ scheme, 2016.
The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 will remain open for declarations up to March 31, next year. Under this scheme, declarations can be made by any person relating to undisclosed income in the form of cash or deposits in an account with bank or post office or specified entity.
