RBI's u-turn: Won't be questioned for depositing more than Rs 5000

No questioning will be done for the tenders depositing old notes up to or less than Rs 5000 into bank accounts till the mentioned date

Reserve Bank of India (RBI) on Monday did an about turn and said that it is withdrawing the provisions of the December 19, 2016 notification.

The notification stated that any individual depositing over Rs 5000 in their bank accounts will have to explain to two bankers why they did not do so since November 9, 2016. RBI said, "On a review of the above, we advise that the provisions of the above circular at sub para (i) and (ii) will not apply to fully KYC compliant accounts."

The credit of old notes will 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 RBI had said.

Moreover, no questioning will be done for the tenders depositing old notes up to or less than Rs 5000 into bank accounts till the mentioned date, the RBI said.

Before the Monday's notification, the government had allowed citizens to allow as much in their bank accounts as many number of times as they wanted till December 30, 2016 without any such scrutiny.

The last date of deposting demonetised currency in your bank accounts is December 30, 2016. Failing to meet the deadline, depositors will have one more chance of surrendering the cash by going to an RBI branch till March 31, 2017.