The Reserve Bank of India (RBI) has imposed new conditions on the deposit of the old demonetised Rs 500 and 1000 notes.
The bank has stated that the deposit of old notes exceeding the amount of Rs 5000 will be allowed only once per account till 30 December 2016, the last date for the submission of the old notes. The deposit will need to be backed by a satisfactory explanation on why the owner had not deposited the notes earlier.
Even if someone attempts to make multiple deposits in a value lesser than Rs 5000 to try and work around the new rule, they will face the same scrutiny once they cross the mark of Rs 5000 and their multiple deposits will be evaluated as if they were just one.
This move has been made to keep a check on the inflow of a large amount of unaccounted for cash through bank accounts. Along with this, the bank stated that the old notes exceeding the value of Rs 5000 shall only be credited to the KYC (Know Your Customer) complain accounts, as these accounts will give the bank easy access to the identity and addresses of the clients.
The high denomination notes of Rs 500 and 1000 were demonetised all of a sudden on 9 November 2016, following which people were given time till 30 December to deposit all their old notes.
The government had then stated that any deposit above Rs 2.5 lakh will invite tax scrutiny but it also gave a chance to the black money hoarders to come forward and declare their money by paying 50 percent in tax and penalty under the Pradhan Mantri Garib Kalyan Yojana 2016. Almost 13 lakh crores of old notes have been returned to the system.
This is not, however, the end of RBI’s announcement, as the bank is expected to issue more guidelines on maintaining strict scrutiny on the deposit of Rs 5000 plus old notes.