RBI modifies conditions for depositing over Rs 5000 in old notes
The Reserve Bank of India goes back on its earlier statement of Rs 5000 deposit limit in old Rs 500 and 1000 currency notes.
The Reserve Bank of India has withdrawn the Rs 5000 limit it had imposed on deposit of money in old currency notes for those holding KYC accounts.
In a newly released report, the RBI has stated that KYC (Know Your Customer) complaint account holders will not be questioned while depositing more than Rs 5000 in old 500 and 1000 currency notes. The decision is said to have been taken after the Central body reviewed its previous call.
It was only two days back on 19 December that RBI had issued a statement announcing a limit on the deposit of old notes effective immediately. According to its earlier statement, the deposit of old currency notes exceeding the amount of Rs 5000 will only be allowed once per account till 30 December and that too with a reasonable explanation on why the money had not been deposited up until now.
Apart from this, RBI announced that it would be issuing of a new batch of Rs 500 notes in Mahatma Gandhi series. These notes will have inset letter ‘R’ in both the number panels, bearing the signature of the current RBI Governor Urjit R Patel and the year of printing ‘2016’ printed on the reverse.
In a separate notification, the bank also announced its decision of issuing new Rs 50 denomination notes, similar to the ones issued earlier in Mahatma Gandhi Series-2005. The new banknotes will also have inset letter ‘R’ and ‘L’ in both the number panels. RBI also confirmed that old Rs 50 notes will continue to be legal tender.