RBI withdraws Rs 5,000 deposit limit; no explanation needed for KYC account holders

The Reserve Bank of India (RBI) in its latest notification on 21 December has withdrawn provisions related to questioning deposits above Rs 5,000 in old notes of Rs 500 and Rs 1,000 in fully KYC-compliant bank accounts.

On 19 December, adding to the slew of changes that were made to the demonetisation programme since its inception on 8 November, the Finance Ministry and the Reserve Bank of India had issued a notification, announcing that deposits amounting to more than Rs 5,000 in old notes can be made in a bank account only once, before the 30 December deadline.

Also Read: Deposits exceeding Rs 5,000 in old notes allowed only once till 30 Dec : Salient features of new RBI notification

The RBI had issued a notification on 19 November saying, "The Deposits of more than 5,000 rupees in old 500 and 1,000-rupee notes can be made in a bank account only once till 30 December, the deadline for depositing old notes."

"Old notes amounting to more than Rs 5,000 will be credited to deposits only after questioning tenderer, 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."

Both the provisions have been withdrawn.