RBI exempts KYC-compliant accounts from Rs 5,000 deposit limit

The monetary policy regulator also refused to give any details about the time it will take to replenish the currency notes.

New DElhi, Dec 21: The Reserve Bank of India has modified its circular of December 19, limiting deposit of old notes to Rs 5,000, exempting KYC (know your customer) accounts from it.

‘Please refer to our circular dated December 19, 2016. On a review of the above, we advise that the provisions of the above circular at sub para (i) and (ii) will not apply to fully KYC compliant accounts,’ the RBI said in a release.

The said sub para (i) stipulated that old ‘tenders in excess of Rs 5000 in to 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 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. The explanation should be kept on record to facilitate an audit trail at a later stage. An appropriate flag also should be raised in CBS to that effect so that no more tenders are allowed’.

While sub para (ii) said, ‘Tenders of SBNs up to Rs 5,000 in value received across the counter will allowed to be credited to bank accounts in the normal course until December 30, 2016. Even when tenders smaller than Rs 5,000 are made in an account and such tenders taken together on cumulative basis exceed Rs 5,000 they may be subject to the procedure to be followed in case of tenders above Rs 5,000, with no more tenders being allowed thereafter until December 30, 2016.’

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