1. Now deposits over Rs 5000 in old notes are also under scrutiny: Here is all you need to know

Now deposits over Rs 5000 in old notes are also under scrutiny: Here is all you need to know

The Central government on Monday announced that tenders of Specified Bank Notes (SBNs) in excess of Rs 5000 into a bank account will be received for credit only once during the remaining period till December 30, 2016.

By: | Updated: December 19, 2016 3:25 PM
“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 notification said. (Reuters) “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 notification said. (Reuters)

The Central government on Monday announced that tenders of Specified Bank Notes (SBNs) in excess of Rs 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 notification said.

In a letter issued to the heads of all banks – including PSU, Private and Foreign banks – across the country, the RBI said, “On a review of the provisions ii, iii and iv at C of Para 3 dealing with credit of the value of SBNs into bank accounts, it has been decided to place certain restrictions on deposits of SBNs into bank accounts while encouraging the deposits of the same under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.”

Here are six things you must know about the latest restrictions imposed on deposits of SBNs into bank accounts by the RBI:

1. Tenders of SBNs in excess of Rs 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 will be kept on record to facilitate an audit trail at a later stage. Banks have been advised to raise an appropriate flag in CBS to that effect so that no more tenders are allowed.

2. Tenders of SBNs up to Rs 5000 in value received across the counter will be allowed to be credited to bank accounts in the normal course until December 30, 2016. Even when tenders of smaller than Rs 5000 are made in an account and such tenders taken together on cumulative basis exceed Rs 5000, they may be subject to the procedure to be followed in case of tenders above Rs 5000, with no more tenders being allowed thereafter until December 30, 2016.

3. Banks have also been advised to ensure that full value of tenders of SBNs in excess of Rs 5000 should be credited to only KYC-compliant accounts and if the accounts are not KYC-compliant, credits may be restricted up to Rs 50,000 subject to the conditions governing the conduct of such accounts.

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4. However, the above restrictions will 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.

5. 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.

6. 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.

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  1. Murthy Suppusamy
    Dec 19, 2016 at 10:35 am
    Fundamental rights of life, liberty and pursuit of happiness are hijacked.
    Reply
    1. Murthy Suppusamy
      Dec 19, 2016 at 10:37 am
      Fundamental rights of life, liberty and pursuit of happiness are thrown out into muddy waters of Ganges. India's image on Human rights deteriorates worldwide permanently.
      Reply
      1. Murthy Suppusamy
        Dec 19, 2016 at 10:35 am
        Fundamental rights to life, liberty and pursuit of happiness are hijacked. India's image on Human rights deteriorates worldwide.
        Reply

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