RBI modifies circular on depositing over Rs.5000 in banks

The Reserve Bank of India has modified the old currency deposit rules and withdrew the 5000 rupee limit for depositing money in old currency notes for fully KYC (Know Your Customer) compliant accounts only. The RBI in a circular issued said the KYC complaint account holders will not be questioned over depositing more than 5000 rupee of old currency notes of 500 and 1000 rupees. The RBI said it is revoking the restrictions after



review. 

On Monday, the RBI announced that deposits in old notes will be limited to 5000 rupee, and those exceeding the sum will come under scrutiny. It said the customers would have to answer questions such as why they couldn’t deposit the money so far. Tenders of SBNs up to 5000 rupee in value received across the counter will be allowed to be credited to bank accounts in the normal course until December 30, 2016.