RBI limits old note deposits of over Rs5,000 to once till 30 Dec

Deposits of above Rs5,000 in demonitised Rs500 and Rs1,000 bank notes can be made only once till 30 December, except in case of deposits under the Pradhan Mantri Garib Kalyan Yojana 2016, Reserve Bank of India (RBI) said on Monday.

Deposits of demonetised currency notes, referred to as Specified Bank Notes (SBNs), in excess of Rs5,000 into a bank account will be received for credit only once during the remaining currency swap period, ie, till 30 December 2016, Reserve Bank of India stated in a release today.

However, any such credit in such cases will be made only after questioning the tenderer of the currency, 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 thereto. The explanation will also 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, RBI said.

Tenders of SBNs up to Rs5,000 in value received across the counter will be allowed to be credited to bank accounts in the normal course until 30 December 2016. However, when tenders smaller than Rs5,000 are made in an account, if such tenders taken together on cumulative basis exceed Rs5,000 then they may be subject to the procedure to be followed in case of tenders above Rs5,000, with no more tenders being allowed thereafter until 30 December 2016.

It may also be ensured that full value of tenders of SBNs in excess of  Rs5,000 shall be credited to only KYC compliant accounts and if the accounts are not KYC compliant, credits may be restricted to Rs50,000 subject to the conditions governing the conduct of such accounts.

These restrictions will 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.

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.

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, as indicated in Annex-5 of RBI's earlier circular.