11 curbs on deposits above Rs 5,000: All you should know

The RBI said these restrictive conditions would apply on cumulative deposit of notes in a single account if it exceeded Rs 5,000

The government and the Reserve Bank of India (RBI) on Monday imposed strict deposits curbs 11 days before the deadline to deposit scrapped Rs 500 and Rs 1,000 notes in bank accounts.

In separate notifications, the finance ministry and RBI said over Rs 5,000 worth of scrapped notes could be deposited in bank accounts only once, after the depositor had been questioned in the presence of at least two bank executives on why he or she could not deposit the amount earlier. The finance ministry’s notification came on Saturday but was released on Monday. RBI’s statement was also released on Monday.

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Demonetisation Saga

Nov 8:  Demonetisation announced. Rs 500 and Rs 1,000 notes become null with immediate effect. Deposits of old notes for over-the-counter exchange capped at Rs 4,000. Deposits in accounts with incomplete KYC norms capped at Rs 50,000.

Nov 14:  Exchange limit increased to Rs 4,500 from Rs 4,000

Nov 15:  Indelible ink to be used on people exchanging notes to weed out proxies

Nov 18:  Exchange limit reduced to Rs 2,000

Nov 24:  Exchange of old notes banned, foreigners exempted

Dec 19:  Deposit of old notes exceeding Rs 5,000 limited to only once per account till Dec 30, that too after scrutiny

 

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