You can still deposit your old notes: 8 things to know about Pradhan Mantri Garib Kalyan Deposit Scheme

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February 21, 2017 1:28 PM

If you have failed to deposit some of your old currency notes for any reason, then you can still deposit those notes till March 31 this year. In fact, during the demonetisation phase, the Government of India had introduced 'Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS)'

deposit, old note, thousand rupee notes, Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), finance minister, RBIThe Finance Ministry had said that this will give an opportunity to all those people who have not disclosed their income yet.

If you have failed to deposit some of your old currency notes for any reason, then you can still deposit those notes till March 31 this year. In fact, during the demonetisation phase, the Government of India had introduced ‘Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS)’. The Finance Ministry had said that this will give an opportunity to all those people who have not disclosed their income yet. They can now use their old currency notes to pay off their penalty under Pradhan Mantri Garib Kalyan Yojana, a black money declaration scheme to help the poor people of the society, adhering to tax laws.

This scheme shall be applicable to every declarant under the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.

Here are the details of “Pradhan Mantri Garib Kalyan Deposit Scheme”:

1. Eligibility for Deposits
The deposits under this Scheme shall be made from the 17th day of December, 2016 till 31st of March, 2017, by any person who declared undisclosed income under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.

2. Form of deposits
The deposits will be held at the credit of the declarant in Bonds Ledger Account maintained with the Reserve Bank of India. A certificate of holding shall be issued to the declarant in Form I. The Reserve Bank of India shall transfer the deposit received under this Scheme into the designated Reserve Fund in the Public account of the Government of India.

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3. Authorised banks
(a) Application for the deposit in the form of Bonds Ledger Account shall be received by any banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (hereinafter referred to as Authorised Banks).
(b) The Authorised Bank shall electronically furnish the details of deposit made in Form V to the Department of Revenue, Ministry of Finance, Government of India not later than next working day to enable the Department to verify the information of the deposit before accepting the declaration.
(c) The authorised bank shall upload the details of deposit into Reserve Bank of India’s Core Banking Solution ‘e-Kuber’.
(d) The Reserve Bank of India and Authorised Bank shall maintain the confidentiality of the data received in this regard.

4. Subscription and Mode of investment in the Bonds Ledger Account
(a) The deposits shall be accepted at all the authorised banks.
(b) The deposits shall be made in multiples of rupees one hundred.
(c) The deposit by a declarant shall not be less than twenty-five per cent of the undisclosed income declared under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.
(d) The entire deposit shall be made, in a single payment, before filing declaration under sub-section (1) of section 199C ibid.
(e) The deposit shall be made in the form of cash or draft or cheque drawn in favour of the authorised bank accepting such deposit or by electronic transfer.
The effective date of opening of the Bonds Ledger Account shall be the date of tender of cash or the date of realisation of draft or cheque or transfer through electronic transfer.

5. Applications
(a) An application for the deposit under this Scheme shall be made in Form II clearly indicating the amount, full name, Permanent Account Number (hereinafter referred to as “PAN”), Bank Account details (for receiving redemption proceeds), and address of the declarant. Provided that if the declarant does not hold a PAN, he shall apply for a PAN and provide the details of such PAN application along with acknowledgement number.

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6. Nomination
(a) A sole holder or a sole surviving holder of a Bonds Ledger Account, being an individual, may nominate in Form III, one or more persons who shall be entitled to the Bonds Ledger Account and the payment thereon in the event of his death.
(b) Where any amount is payable to two or more nominees and either or any of them dies before such payment becomes due, the title to the Bonds Ledger Account shall vest in the surviving nominee or nominees and the amount being due thereon shall be paid accordingly. In the event of the nominee or nominees predeceasing the holder, the holder may make a fresh nomination.
(c) A nomination made by a holder of Bond Ledger Account may be varied by a fresh nomination, or may be cancelled by giving notice in writing to the Authorised Bank in Form IV.
(d) Every nomination and every cancellation or variation shall be registered at the Reserve Bank of India through the authorised bank and shall be effective from the date of such registration.
(e) If the nominee is a minor, the holder of Bonds Ledger Account may appoint any person to receive the Bonds Ledger Account or the amount due in the event of his death.

7. Transferability & Interest
The transferability of the Bonds Ledger Account shall be limited to nominee or to the legal heir of an individual holder, in the event of his death. The deposits shall not bear any interest.

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8. Tradability against Bonds & Repayment
The Bonds Ledger Account shall not be tradable. The Bond Ledger Account shall be repayable on the expiration of four years from the date of deposit and redemption of such Bond Ledger Account before its maturity date shall not be allowed.

(With inputs from RBI release)

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