Demonetisation: RBI modifies cash deposit rules again; exempts KYC accounts from Rs 5,000 cap

Demonetisation: RBI modifies cash deposit rules again; exempts KYC accounts from Rs 5,000 capNew Delhi: Reserve Bank of India (RBI) on Wednesday modified cash deposits rules by  exempting KYC accounts from Rs 5,000 cap.

RBI on Monday had said that deposit of banned Rs 500 and Rs 1,000 notes for amount exceeding Rs 5000 shall be made only once per account until December 30.

The RBI has stated, “It may also be ensured that full value of tenders of SBNs in excess of Rs 5000 shall be credited to only KYC compliant accounts”.

If accounts are not KYC compliant credits may be restricted up to Rs 50,000 subject to conditions governing the conduct of such accounts.

As per RBI new notification, the following two paragraphs related to circular dated December 19 will not apply to fully KYC compliant accounts.

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 should be kept on record to facilitate an audit trail at a later stage. An appropriate flag also should be raised in CBS to that effect so that no more tenders are allowed.

Tenders of SBNs up to Rs 5000 in value received across the counter will allowed to be credited           to bank accounts in the normal course until December 30, 2016. Even when tenders 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.

     Bureau Report

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