Here is a breakdown of what the latest RBI announcement means.
The Reserve Bank of India (RBI) has announced restrictions on deposits of old Rs 500 and Rs 1000 notes in an attempt to check the laundering of unaccounted cash and also boost the money that goes to new government scheme- Pradhan Mantri Garib Kalyan Yojana (PMGKY), 2016.
Here is a break down of what the recent central bank announcement means:
1) Now, you will be able to deposit the defunct Rs 500 and Rs 1000 notes in an amount more than Rs 5000 in your bank account only once until December 30, 2016.
2) If you are depositing over Rs 5,000 in your bank account, it will be credited to your account only after at least two bank officials question you, on record, on why the amount could not be deposited earlier and receive a "satisfactory explanation."
3) Your explanation will be kept on record so that an audit trail can be facilitated later if required. Your Core Banking Solution (CBS) system will also be informed so that no more tenders are allowed.
4) Even if you deposit the demonetized cash in small amounts and the aggregate exceeds Rs 5000, you will still be questioned by at least two bank officials, on record and no more deposits will be allowed thereafter until December 30, 2016.
5) Deposits in excess of Rs 5,000 will be credited only to Know Your Customer (KYC)-compliant accounts and if the accounts are not KYC compliant, there may be restrictions on total credits by up to Rs 50,000 which would then be subjected to conditions on the manner of conduct of such accounts.
6) However, the aforementioned announced restrictions are not applicable for deposits under the Taxation and Investment Regime of the Pradhan Mantri Garib Kalyan Yojana 2016.
7) Cash of equal value may be credited to an account at any bank in accordance with standard banking procedure along with a valid proof of identity.
8) Cash of equal value may also be credited to someone else's account, once that third party gives specific authorisation to the bank, the standard banking procedure is followed and the person crediting the money presents a valid proof of identity.
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