Mumbai: Facing severe criticism for its restrictive deposit norms, the Reserve Bank of India on Wednesday took a U-turn and relaxed the existing rules for depositing old notes. Under the new rules, restrictions have been eased for Know-Your Customer (KYC)-compliant accounts.
Under the new rules if you have a KYC-compliant account, then
1. Bank officials will not ask you any questions, you can deposit whatever any amount of old notes in cash
2. You can deposit above Rs 5,000 number of times
Earlier, you were allowed to make deposits above Rs 5,000 only once, and bank officials were supposed to question you about the source of this money.
For Non-KYC compliant, the upper deposit limit of Rs 50,000 continues.
This is RBI's 60th notification since November 8, and one of many U-turns on deposit and withdrawal norms.
KYC (know your customer) is a process through which banks obtain information about the identity and address of the customers while opening accounts and
periodically update the customers’ personal details.