Demonetisation: RBI does a U-turn, rolls back Rs 5000 deposit limit decision

The Reserve Bank of India (RBI), in a fresh notification, has now removed restrictions from depositing old notes in banks. This notification comes a day after the finance ministry put restrictions on depositing more than Rs 5000.

Finance Minister Arun Jaitley had said people depositing more than Rs 5000 in banks will have to reason out why they were making the deposits so late and their accounts will be scanned.

However, the RBI has done a U-turn now and said first time depositors will not be questioned.

The RBI has withdrawn the Rs 5000 deposit restriction for KYC compliant accounts till December 30.

In a circular, the central bank said no official will be recorded while depositing old bank notes.

“It may also be ensured that full value of tenders 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 RBI said.

Bankers and customers were facing inconvenience while depositing money as bankers did not know what does a satisfactory reply meant, leading to more delay, confusion and huge queues.

(Image: Reuters)