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21
December 2016
In a U-turn, the RBI on Wednesday
withdrew its order barring people with KYC-compliant bank accounts from
depositing over Rs5,000 in old currency more than once until December 30. The Total Investment & Insurance
Solutions
But the notification stands for bank
accounts which are non-KYC. The upper limit of Rs50,000 also stays for non-KYC
bank accounts, the Reserve Bank of India said. The Total Investment & Insurance Solutions
The central 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.
On December 19, the RBI had announced
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, he
said. The Total Investment &
Insurance Solutions
The RBI decision on Wednesday came after
the one-time deposit condition drew widespread flak.
Both the opposition and bank customers
hit out at the government's flip-flop over deposit of old notes following the
November 8 decision to recall the high-value currency bills.
According to the December 19
notification, if a person deposits more than Rs5,000 in withdrawn currencies,
the account will be credited only after questioning him or her, in the presence
of two bank officials, as to why the money was not deposited earlier.
The bankers were to keep the explanatory
statement on record for future audit trail.
Even if the deposits were less than
Rs5,000 at a time but cumulatively exceeds the amount, then also the bank
officials were told to get on record an explanation from the depositor.
The condition vis-a-vis non-KYC
compliant accounts remains, the upper limit of deposits restricted to Rs50,000. The Total Investment & Insurance
Solutions
Officials said the curbs were meant to
encourage deposits of the demonetised currency under the Taxation and
Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.
The Finance Ministry had also said
earlier that the decision was meant to end the seemingly unending queues in
banks.The Total Investment &
Insurance Solutions
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