Deposit Of Amount Exceeding Rs 5,000 To Be Made Only Once Per Account Until 30 December: Finance Ministry

In an attempt to check money laundering, the Finance Minister has issued a notification limiting the deposit of an amount exceeding Rs 5,000 to only once per account until 30 December.

According to RBI, when a person deposits over Rs 5,000 in withdrawn currencies, then credit shall be given to that person's account only after questioning him or her, in the presence of two bank officials, as to why the notes were not deposited earlier. Only after getting a satisfactory explanation credit would be given. The bankers will keep the explanatory statement on record for future audit trail.

If amounts smaller than Rs 5000 exceed the limit when taken together (cumulative), they may be subject to the procedure to be followed in case of tenders above Rs 5000.

In its notification, the RBI has instructed all the banks to give full credit to demonetised notes over Rs 5,000 only in the case of accounts compliant with `Know Your Customer' (KYC) norms. If the accounts are not KYC compliant, then the total deposit will be restricted to Rs 50,000.

However, no limit has been imposed on the value of deposits of bank notes under the Taxation & Investment Regime for Pradhan Mantri Garib Kalyan Yojana (PMGKY) 2016.