Demonetisation: Rule changed yet again

Scrapped currency of over Rs 5,000 can only be deposited only once till December 30

GN Bureau | December 19, 2016


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One thing consistent about demonetisation has been the ever-changing rules. Monday saw a new rule in place.

One can now deposit the scrapped currency of Rs 500 and Rs 1,000 in excess of Rs 5,000 only once till December 30 and that too “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”.


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An RBI notification said that it has been decided to place certain restrictions on deposits of scrapped currency into bank accounts while encouraging the deposits of the same under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.

“Tenders of SBNs (specified bank notes) in excess of Rs 5,000 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. 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,” the RBI said.

It added that scrapped currency 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 5,000, with no more tenders being allowed thereafter until December 30, 2016.”

The notification stresses it may also be ensured that full value of tenders 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.

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

 

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