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

Do you know these hidden forces behind your economic and business decisions?

Predictably Irrational By Dan Ariely Harper Perennial, 384 pages, Revised edition: 2010 In this meticulously researched work, Israel-American psychologist and behavioural economist Dan Ariely [h

Social media guidelines: All you need to know about the change

Amidst growing concerns around lack of transparency, accountability and rights of users related to digital media, the government has framed ‘Guidelines and Digital Media Ethics Code’ after elaborate consultation with the public and stakeholders, to have a “harmonious, soft-touch oversight

PLI scheme to boost IT hardware manufacturing

A production-linked incentive (PLI) scheme with a cost of Rs 7,350 crore over four years was approved by the union cabinet Wednesday, aiming to boost domestic manufacturing and attract global investment in IT hardware like laptops, tablets, PCs and servers. The scheme extends an incentive of

Govt could’ve done more to support film industry: Ramesh Sippy

Lamenting the fact that the government has not done enough to uplift cinema halls badly affected by pandemic-induced lockdown and get back audiences to theatres, legendary filmmaker Ramesh Sippy has said that the film industry needs a revival package and larger government support than that announced in the

Genius of Ghalib, equally at home in solving murder mystery

Murder at the Mushaira By Raza Mir Aleph / 344 pages / Rs 799 While Indian-English writing has achieved great heights in literary fiction, that achievement is ye

As Covid cases rise, stringent restrictions are back in Mumbai

With the surge in the number of Covid-19 cases over the past few days in several districts of Maharashtra as well as in the city of Mumbai, stringent measures are making a comeback. BMC municipal commissioner Iqbal Singh Chahal on Thursday announced stricter rules against those flouting Covi

Visionary Talks series with Ramesh Sippy, On The Future Of Cinema



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter