Deposit Your Old Notes in One Go by 30 December: Arun Jaitley

Finance minister Arun Jaitley said that repeated deposits by the same individual, however, will attract scrutiny.

Finance Minister Arun Jaitley. (Photo: Reuters)

Following the RBI's new rules pertaining to the depositing of demonetised currency, Finance Minister Arun Jaitley has clarified that no questions will be asked if any amount of old currency is deposited in one go.

However, he warned that repeated deposits may provoke queries.

The RBI announced earlier on Monday that deposits of old Rs 500 and Rs 1,000 notes in excess of Rs 5,000 will now be allowed only once till December 30 – that too after strict scrutiny.

The statement from the Finance Minister appears to contradict the RBI’s announcement.

“If they go and deposit with bank any amount of currency no questions are going to be asked to them and therefore the 5000 rupee limit does not apply to them if they go and deposit it once,” Jaitley said.

But if they are going to go everyday and deposit some currency, same person, that gives rise to suspicion that where is he acquiring this currency from. In that event a person may have something to worry about. Therefore everyone is advised whatever old currency you have please go and deposit it now

The old Rs 500 and Rs 1,000 notes. (Photo: AP)

The Finance Minister said that since all exemptions to certain sectors and utilities – which had been allowed to accept the banned currency post demonetisation – ended last week, those in possession of the old notes are supposed to deposit them with banks.

“Anyone who has old currency notes is not allowed to trade them in. He can only go and deposit them with banks,” he said.

The bankers will keep the explanatory statement on record for future audit trail.

Also read: Now, Deposits Over Rs 5,000 Can Be Made Only Once Till 30 December

Deposits of Rs 500 and Rs 1,000 notes up to Rs 5,000 in value received across the counter will be allowed to be credited to bank accounts in the normal course until 30 December.

If the deposits are less than Rs 5,000 at a time but the cumulative value exceeds Rs 5,000, then the bank officials will probe the depositor as to why the deposit was not made earlier.

These restrictions do not apply to deposits under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana.

“RBI Has Enough Cash to Last Beyond 30 December”

The RBI was fully prepared to deal with currency shortages post demonetisation and has enough currency in its chests to last “far beyond” 30 December, Jaitley said during a press conference on Tuesday.

There was full preparedness. There was not a single day when the RBI had not released adequate currency to banks. There was a certain level of currency that was to be released and there was full preparedness for it.

He said the RBI has maintained the stock of currency through advance as well as current printing level.

“Today too the RBI has more than adequate stock not only to last them till December 30 but to last them far beyond that,” he said.

(With inputs from PTI and IANS)