As per latest guidelines by RBI & Government of India the barring has been put on deposit of old denomination notes in quantity of more than Rs 5000 in denominations of 500 & 1000. According to new rules the person can deposit more than 5000 rupees old currency notes only once that too with proper clarification.
The fresh rules are as enlisted:
• The old notes 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 the depositor, 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 to that effect so that no more such deposits are allowed.
• Old notes of 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 deposits smaller than Rs 5000 are made in an account and such deposits taken together on cumulative basis exceed Rs 5000, they may be subject to the procedure to be followed in case of deposits above Rs 5000, with no more deposits being allowed thereafter until December 30, 2016.
• It should also be ensured that full value of deposits of old notes in excess of Rs 5000 shall be credited to only KYC compliant accounts and if the accounts are not KYC compliant credits may be restricted up to Rs 50,000 subject to the conditions governing the conduct of such accounts.
• The above restrictions shall not apply to tenders of old notes for the purpose of deposits under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.
• The equivalent value of old notes deposited may be credited to an account maintained by the depositor at any bank in accordance with standard banking procedure and on production of valid proof of Identity.
• The equivalent value of old notes deposited may be credited to a third party account, provided specific authorization accorded by the third party is presented to the bank, following standard banking procedure and on production of valid proof of identity of the person actually depositing, as indicated in Annex-5.
Quoting of PAN is mandatory in the following transactions
• Deposit with a bank in cash exceeding Rs 50,000 in a single day
• Purchase of bank drafts or pay orders or banker’s cheques from a bank in cash for an amount exceeding Rs 50,000 in a single day
• A time deposit with a Bank or a Post Office
• Cash deposits aggregating to Rs 2,50,000 or more during the period 09th November, 2016 to 30th December, 2016
• The over the counter exchange facility has been discontinued from the midnight of 24th November, 2016 at all banks.
• The exchange of the old Rs 500 and Rs 1000 notes will continue to be available at the counters of the Reserve Bank up to the current limits of Rs 2000 per person.
• Foreign citizens will be permitted to exchange foreign currency up to Rs. 5000 per week. Necessary entry to this effect will be made in their passports. This will be applicable up to 15th December 2016.
• The limit has been decreased from the existing Rs 4,500 to Rs 2,000. The reduced limit will be applicable from 18th November, 2016.
• Separate queues will be arranged for Senior Citizens and Divyang persons, customers with accounts in the Bank and for customers for exchange of notes.
These new rules are a statement of intent from the government & RBI which showcases the strength the government is committed to achieve the goal of cashless economy.
In order to make government achieve its goal the banks and the online agencies are working day & night relentlessly in this regard to achieve the dynamics .Hoping new year will bring new ray of hope for all Indian people and the Indian Economy will boom & move close to one of the strongest economies of the world.
Article By: Mukesh