RBI Withdraws one-time Deposit Norm for KYC Accounts

RBI Withdraws one-time Deposit Norm for KYC Accounts
By Admin 7 years ago

Now, customers can deposit more than Rs 5,000 in old notes

In a huge U-turn, the RBI today withdrew its rule issued Monday that imposed restrictions on deposits of old notes worth more than Rs 5,000+ before December 30, after being vilified for it.

Now, deposits more than Rs 5,000 of old notes will be allowed until December 30, but only to KYC-compliant accounts, the RBI said.

The Centre and the RBI had been massively criticized+ for Monday's rule change, even by people who broadly supported demonetization, which took place on November 8.

On Monday, the Reserve Bank of India issued a new rule limiting deposits to Rs 5,000. That rule was part of what was the 59th circular since demonetization. It said that deposits totaling more than Rs 5,000 in old Rs 500 and Rs 1,000 notes can be made only once and only once per account, until December 30. It added that if someone has more than Rs 5,000 in old notes, a deposit will only be allowed after the depositor satisfactorily answers why they couldn't put the money into their account earlier.

All this, despite the Centre initially - when announcing demonetization on November 8 - allowing the deposit of old notes totaling any amount, until December 30.

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