Check out the new rules to deposit old notes!

Photo of old currency notes of Rs 500 and Rs 1000.

Chennai: The RBI on Monday restricted deposits of demonetised Rs 500 and Rs 1,000 notes in excess of Rs 5,000 only once till December 30-after strict scrutiny.

The new restrictions are meant to encourage deposits of demonetised currency notes under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.

The Reserve Bank of India in its notification, instructed all the banks to give full credit to demonetised notes over Rs 5,000 only in the case of accounts compliant with ‘Know Your Customer’ (KYC) norms.

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If the accounts are not KYC compliant, then the credit for deposits of demonetised currencies will be restricted to Rs 50,000.

According to RBI, when a person deposits over Rs 5,000 in withdrawn currencies, then credit shall be given to that person’s account only after questioning him or her, in the presence of two bank officials, as to why the notes were not deposited earlier.

The credit will be given only after getting a satisfactory explanation. The bankers will keep the explanatory statement on record for future audit trail.

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RBI said, “An appropriate flag also should be raised in CBS (Core Banking Solutions) to that effect so that no more tenders are allowed.”

The government demonetised Rs 500 and Rs 1,000 notes on November 8, saying the move was meant to fight corruption, black money and terror funding.

Deposits of Rs 500 and Rs 1,000 notes up to Rs 5,000 in value received across the counter will be allowed to be credited to bank accounts in the normal course until December 30.

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