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

The RBI is taking steps to check misuse of banking channels for parking unaccounted money.

The Reserve Bank of India (RBI) seal is pictured on a gate outside the RBI headquarters in Mumbai. (Photo: Reuters)

The RBI announced on Monday that demonetised currency above Rs 5,000 can now be deposited in bank accounts only once till 30 December.

People depositing the old Rs 500 and Rs 1,000 in excess of Rs 5,000 will be questioned in the presence of at least two bank officials about why it was not deposited earlier, the RBI said in a notification.

This comes a few days after the apex bank imposed certain restrictions on withdrawals.

Tightening the noose around people who misused banking channels to park unaccounted money, the bank last Thursday imposed restrictions on withdrawal if more than Rs 2 lakhs has been deposited after 9 November in an account which has a balance of over Rs 5 lakh.

As per a RBI notification, withdrawal or transfer of funds will not be permitted in accounts without the quoting of PAN or submission of Form 60 (for persons who do not have PAN).

The Reserve Bank also said the monthly withdrawal limit of Rs 10,000 will be maintained even if a ‘small account’ has witnessed an increase in annual permissible deposits of Rs 1 lakh.

The notification follows after it was brought to the notice of the RBI that "strict compliance" with KYC (Know Your Customer) provisions is not being ensured in some cases.

In respect of KYC compliant accounts where the required Customer Due Diligence (CDD) procedure has been complied with, RBI said banks and NBFCs should ensure compliance regarding quoting of PAN/obtaining of Form 60 for all transactions.

No debit transaction, transfer, or otherwise, shall be allowed in accounts which do not comply with the above mentioned requirements. To begin with, this rule shall be strictly applied in accounts where both the thresholds listed -- (i) balance of rupees five lakh or more; and (ii) the total deposits (including credits by electronic or other means) made after November 9, 2016, exceed rupees two lakh

Reserve Bank Of India

RBI further said if any account is rendered ineligible for being classified as a small account due to credits/balance in the account exceeding the permissible limits, withdrawals may be allowed within the limit prescribed for small accounts.

The monthly limit for withdrawal and transfer from a small account is Rs 10,000. Also, aggregate of all credits in a financial year cannot exceed Rs 1 lakh.

Basic Savings Bank Deposit Accounts (Jan Dhan accounts are akin to BSBDAs), which are not KYC compliant accounts are to be treated as ‘small accounts’, the RBI added.

Basic Savings Bank Deposit Accounts (Jan Dhan accounts are akin to BSBDAs), which are not KYC compliant accounts are to be treated as ‘small accounts’, the RBI added.

Since the demonetisation of Rs 500 and Rs 1000 notes, there have been reports of some people misusing Jan Dhan and dormant accounts to deposit unaccounted money following demonetisation.