RBI takes sharp U-turn, withdraws one-time deposit norm

Photo related to KYC norms of RBI.

New Delhi: The Reserve Bank of India (RBI) today takes a sharp U-turn on its decision of barring people with KYC-complaints bank accounts for depositing demonetized currency notes of Rs 5000 till December 30th.

The RBI said in a notification stands for the bank accounts which are non-KYC. The upper limit of Rs 50,000 also stays for non-KYC bank accounts.

The notification also said such customers will also not be questioned by bank officials on why they had failed to deposit the old notes earlier.

The apex bank said that on reviewing its December 19 notification, it was advising banks to withdraw the one-time deposit condition for amounts above Rs 5,000 for fully KYC-compliant accounts.

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The RBI had announced on December 19 that deposits of demonetised Rs 500 and Rs 1,000 notes in excess of Rs 5,000 will be allowed only once till December 30-that too after strict scrutiny.

The decision created massive confusion even after Finance Minister Arun Jaitley contradicted on Monday night the RBI notification, saying people will not be questioned if any amount of old currency was deposited at one go. But repeated deposits may invite scrutiny.

The RBI decision on Wednesday came after the one-time deposit condition drew widespread flak.

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