RBI Removes Deposit Cap On KYC-Compliant Accounts
The RBI withdrew the cap it placed on the deposit limit in old currency for KYC-compliant accounts for transactions done more than once.
Hyderabad | 21st December 2016
After a spate of contempt and sharp criticism, the Reserve Bank of India (RBI), in a U-turn on Wednesday, withdrew the circular for KYC-compliant accounts that capped the deposit limit in old currency at Rs. 5,000 for transactions done more than once.
The Reserve Bank said that upon reviewing its notification of November 19, it advised banks to withdraw the two conditions for fully KYC-compliant accounts.
Earlier on November 19, the RBI had announced that deposits of the demonetized Rs. 500 and Rs. 1,000 notes in excess of Rs. 5,000 would be allowed only once till December 30, that too only after strict scrutiny of the customer.
As per the notification, when a person deposits over Rs. 5,000 in old currency bills, the account will be credited only after questioning them in the presence of two bank officials, as to "why the notes had not been deposited earlier". The bankers were to record the statement for future audits. But on Monday night, Finance Minister Arun Jaitley said that one-time deposits till December 30, would not invite scrutiny of bank officials.
This contradiction created confusion and later the decision was revoked.
filed in: fullhydOriginalNews, Money, Economy, Demonetization, Centre, Arun Jaitley, Currency