In yet another new notification, the central government has now announced that deposits of old Rs 500 and Rs 1,000 notes worth more than Rs 5,000 into bank accounts can be made only once till 30 December.
A report by The Economic Times, said that the Modi government had announced fresh restrictions on deposits to check ‘laundering of unaccounted cash’ using bank accounts.
“Large deposits cannot be made multiple times in bank accounts. People can deposit up to Rs 5,000 on which there is no restriction,” a senior finance ministry official told ET.
It’s, however, not clear whether the restriction will apply retrospectively and bar anyone, who has already made some deposits of more than Rs 5000 into their accounts since 8 November.
The Reserve Bank of India is likely to issue fresh circular later on Monday announcing measures to check deposits over Rs 5,000.
Here are the salient features of the RBI notification:
- 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.
- It may also be ensured that full value of tenders of SBNs in excess of ₹ 5000 shall be credited to only KYC compliant accounts and if the accounts are not KYC compliant credits may be restricted up to ₹ 50,000 subject to the conditions governing the conduct of such accounts.
- The above restrictions shall not apply to tenders of SBNs for the purpose of deposits under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.
- The equivalent value of specified bank notes tendered may be credited to an account maintained by the tenderer at any bank in accordance with standard banking procedure and on production of valid proof of Identity.
- The equivalent value of specified bank notes tendered may be credited to a third party account, provided specific authorisation therefor accorded by the third party is presented to the bank, following standard banking procedure and on production of valid proof of identity of the person actually tendering, as indicated in Annex-5 of our circular cited above.
(With inputs from ABP News)