Reverse Bank of India

Flip, flop and then flip: central bank reverses Rs 5,000 order

GN Bureau | December 21, 2016


#Currency ban   #RBI   #demonetisation   #corruption   #black money   #finance ministry  


 The Reserve Bank of India on Wednesday withdrew its order of December 19 which had stipulated that the demonetised currency notes could be deposited only once in the quantum of Rs 5,000 or more by December 30.

The fresh circular [https://rbi.org.in/Scripts/NotificationUser.aspx?Id=10790&Mode=0], sent out to all banks, said:
“Please refer to our circular DCM (Plg) No. 1859/10.27.00/2016-17 dated December 19, 2016. On a review of the above, we advise that the provisions of the above circular at sub para (i) and (ii) will not apply to fully KYC compliant accounts.”
The two sub paras referred above, from the previous circular, are:
 
“Tenders of SBNs in excess of ₹ 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. 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.
 
“Tenders of SBNs up to ₹ 5000 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 ₹ 5000 are made in an account and such tenders taken 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 until December 30, 2016.”
 
This would be close to 60th modification in about 45 days, or since the demonetisation was announced on November 8. The daily flip-flops reveal what critics have termed the lack of homework on the part of the RBI and the finance ministry before implementing the most disruptive decision.
 

Comments

 

Other News

`Climate change weakens La Nina’s cooling effect, triggers early heatwaves across India`

India is witnessing an unusually early onset of summer this year, with winter ending by early February and heatwave conditions already emerging across several parts of the country. Scientists say the trend reflects how long-term climate change is increasingly overpowering natural climate patterns such as L

`BMC school enrolment rises to 44%, only 48% students reach class 10`

Student enrolment in schools run by the Brihanmumbai Municipal Corporation (BMC) has seen a gradual rise over the past decade, reaching 44% in 2024–25, according to the latest report released by the Praja Foundation. However, the report highlights significant concerns over student retention, language

Will AI usher in a new agricultural revolution?

The 2026 Union Budget highlights the necessity of making scientific agricultural research more accessible to farmers in India. The announcement of Bharat- VISTAAR (Virtually Integrated System to Access Agricultural Resources), a multilingual AI tool for farmers to increase agricultural productivity, indica

Freedom of speech in Parliament is guaranteed: Lok Sabha speaker

Lok Sabha speaker Om Birla on Thursday emphasized that freedom of speech in Parliament is guaranteed, but it is subject to the Constitution and to the rules and standing orders regulating the procedure of Parliament. He said that detailed guidelines exist under the rules regarding how Members should conduc

Beyond broken bones: The bruises the law cannot see

When violence becomes lawful in one place and tolerable everywhere else, the bruises are no longer Afghanistan’s alone; they belong to all of us.   Somewhere a woman walks in silence, Counting the bruises no one will see. The la

Jishnu Dev Varma sworn in as governor of Maharashtra

Jishnu Dev Varma was sworn in as the 22nd Governor of Maharashtra on Tuesday at a ceremony held at the Durbar Hall of Raj Bhavan. The oath of office was administered by Chandrashekhar, Chief Justice of the Bombay High Court.   The ceremony commenced with the national anthem and t


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter