wordpress blog stats
Connect with us

Hi, what are you looking for?

Rs 5,000 deposit questioning norm reversed by the RBI

The government and the Reserve Bank of India (RBI) should be selling shoes  considering the number of flip flops that have been making during the demonetization of Rs 500 and Rs 1,000 notes. In a another notfication, the RBI withdrew its provisions about questioning deposits above Rs 5,000 in old notes of Rs 500 and Rs 1,000 in fully KYC-compliant bank accounts.

On December 19, the RBI said that old notes in excess of Rs 5000 can be deposited into a bank account only once during the remaining period of demonetization till December 30, 2016. The money would be credited into the accounts only after questioning the depositer, 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 core banking solution to that effect so that no more tenders are allowed,” the RBI’s order read.

Deposits in old notes lesser than Rs 5000 made in an account could not cumulatively exceed Rs 5,000 and would be subject to the questioning procedure above.

Withdrawal limits 

Advertisement. Scroll to continue reading.

Following reports of money laundering, last month, the RBI placed withdrawal limits on Jan Dhan accounts. Fully KYC compliant Jan Dhan account holders will be allowed to withdraw Rs 10,000 in a month while limited or non KYC compliant account holders will be permitted to withdraw Rs 5,000 per month. The RBI added that branch managers may allow withdrawals beyond Rs 10,000 within the current applicable limits (Rs 24,000 per week) only after ascertaining the genuineness of such withdrawals and duly documenting the reasons on the bank’s record.

You May Also Like

News

India had 747.4 million wireless and wireline broadband connections at the end of December 2020, an increase of 3% over a three-month period, according...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ