After backlash, RBI amends Rs 5000 deposit order, says KYC account holders won't be asked questions

After facing huge backlash, the Reserve Bank of India (RBI) on Wednesday amended its order on deposit limit of Rs 5,000 and said that KYC account holders will not be asked questioned.

"Fully KYC compliant account holders can deposit over Rs 5,000 without any questions asked," RBI said.

The Reserve Bank of India (RBI) on Monday had announced that deposits of old Rs 500 and Rs 1,000 notes exceeding Rs 5,000 shall be made only once per account until December 30 but after a satisfactory explanation.

Tenders of Specified Bank Notes (SBN) in excess of Rs 5,000 into 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 the 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. 

Facing political criticism over new deposit rule for banned notes, Law and IT Minister Ravi Shankar Prasad had said that government will come with the structured response. 

Under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) scheme, black money holders can deposit unaccounted cash in account, which will be subject to 50% tax and 4-year interest free lock-in for the remaining 25% of the amount.