1. Demonetisation: Govt exempts deposits in banned Rs 500, Rs 1000 notes into Post Office savings accounts

Demonetisation: Govt exempts deposits in banned Rs 500, Rs 1000 notes into Post Office savings accounts

Government on Wednesday exempted post office saving account from ban on accepting deposits of demonetised Rs 500 and Rs 1,000 notes in small schemes.

By: | New Delhi | Updated: November 23, 2016 8:58 PM
demonetisation, post office, atm, post office india, small savings account, rbi, rbi news Earlier today, RBI had asked banks to not accept the demonetised Rs 500 and Rs 1,000 notes for deposit in small saving schemes with immediate effect. (Reuters)

Government on Wednesday exempted Post Office saving account from ban on accepting deposits of demonetised Rs 500 and Rs 1,000 notes in small schemes. Earlier today, RBI had asked banks to not accept the demonetised Rs 500 and Rs 1,000 notes for deposit in small saving schemes. However, RBI had not provided a reason for the move. An official RBI notification read that the subscribers of small savings schemes would not be allowed to deposit demonetised currency of Rs 500 and Rs 1,000 notes with immediate effect. It directed banks to not accept the old notes of Rs 500 and Rs 1,000. “Government of India has decided that subscribers may not be allowed to deposit demonetised currency in small savings schemes. Banks are, therefore, advised not to accept the old Rs 500 and Rs 1,000 notes for deposits in small saving schemes with immediate effect,”

The finance ministry now, however allowed the Post Offices savings account to accept the demonetised notes. Public Provident Fund (PPF), Post Office Saving Schemes, National Savings Certificates (NSC), Senior Citizen Savings Scheme (SCSS) Account and Kisan Vikas Patra (KVP) fall under small savings scheme.  Post Office Savings Account are opened in Post Offices for less than Rs 20 and offer an interest of 4% per annum.

Government on 8th of November had put a ban on Rs 500 and Rs 1,000 notes. The government had also issued several other guidelines and had set new rules. The ATM withdrawal limit was cut to Rs 2,500. The withdrawal limit from banks too was set to Rs 50,000 cash per week.

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