Mumbai: Now you can deposit old notes above Rs 5,000 only once per account till December 30 2016, the Resrve Bank and the government said on Monday. The new limits have have been set to check laundering of undisclosed cash in small amounts.
If you want to deposit over Rs 5,000 in old notes, two bank officials will ask you first question you " why this money was not put in accounts earlier". If they are satisfied with the answer, then only deposit will be allowed.
The questioning will be recorded, and an audit trail will be created for a 'later stage'.
What is the new rule?
Deposits (using old currency notes of Rs 500 and Rs 1,000s) in excess of Rs 5000 in an account allowed only once during the remaining period till December 30, 2016.
What is the procedure for making these deposits?
Deposits will be allowed only after questioning the depositor, 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.”
What if you deposit less than Rs 5,000 multiple times?
If your cumulative deposits cross Rs 5,000 then the same procedure, as explained previously, will be applied by the bank.
Is there a limit to deposits?
No limit to the amount in case bank accounts are KYC-compliant. So, if your account is KYC-compliant, you can deposit any amount (only once if amount exceeds Rs 5,000) into your account using old currency notes. In case of non-KYC-compliant accounts, a maximum of Rs 50,000 can be deposited in the accounts till 30 December, 2016.
Are there any exceptions?
Restrictions shall not apply to deposits, in old currency notes of Rs 500 & Rs 1,000, for the purpose of deposits under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.
Can someone else deposit in your account?
RBI has specified that third party deposits are allowed. This can be done only if specific authorisation is presented at the bank along with valid identity proof. A valid identity proof is required even if one is depositing old Rs 500 and Rs 1,000 notes in their own accounts.