As India's quality of schooling plummets, here's how Budget 2019 can help

The school education system in India is facing a shortage of trained teachers and a lack of proper infrastructure.

 

Interim Budget 2019: India stepped up its spending on school education by 9.35% from 2014-15 (Rs 45,722.41 crore) to 2018-19 (Rs 50,000 crore). But education’s share in the total union budget fell from 2.55% to 2.05% in this period, according to an IndiaSpend analysis of budgetary data.

On February 1, 2019, when the ruling Bharatiya Janata Party (BJP) presents its last budget before general elections, it will have to address a critical issue in India’s school education: Its quality compares poorly with many south Asian and BRICS nations even though India spends a higher percentage of its gross domestic product (GDP) on education.

In rural India, almost half of grade V students cannot read a grade II text and more than 70% them cannot do division, said the Annual Status of Education Report (ASER) 2018. These numbers indicate a fall in standards over the last 10 years.

Twin problems of school funding: low allocation and underutilisation

Till April 2018, school education in India was mostly covered by three centrally-sponsored schemes:

• Sarva Shiksha Abhiyan (SSA or education for all) that aims to provide universal education to all children between the ages of 6 to 14 years.
• Rashtriya Madhyamik Shiksha Abhiyan (RMSA or national middle education mission) which facilitates secondary education.
• Teacher Education which aims to create sound institutional infrastructure for pre-service and in-service training of elementary and secondary school teachers.

Read full News → Budget 2019 Expectations

Govt's intent to present 'regular budget' serious, grave: Congress

Tewari said the NDA-BJP government does not have the electoral mandate and it does not have the electoral legitimacy to present six full budgets in five years.

 

 

Interim Budget 2019: The Congress on Thursday said it will strongly oppose both inside and outside Parliament the presentation of a "full budget" by the BJP-led NDA government as it has "no electoral legitimacy" and the step will go against set precedents and Parliamentary traditions.

Congress spokesperson Manish Tewari termed as "serious and grave" reports claiming that the BJP-led Government was planning to present a "regular budget" and demanded that it should follow constitutional propriety and only presents a vote-on-account on February 1, 2019 ahead of general elections.

BJP sources have indicated that the Modi government is likely to present a full-fledged budget with a slew of announcements on welfare measures relating to farmers, youth and women.

"A budget is budget. The government is likely present a full-fledged budget. There is no such rule that the government before elections should not present a budget for the entire year. The new government may make changes after the polls if it so wishes," a sources in BJP said.

Tewari said if the reports in public space are correct then it would be "a flagrant violation" of all parliamentary conventions, procedures and traditions that have been followed over the past seven decades since the Constitution of India came into effect.

Read full News → Budget 2019 Expectations 

What 2019 Budget can do to help India clean its air, reduce coal addiction

Addressing policy issues are important if India is to fulfill its commitment to the Paris Climate Agreement 2015 to install 175 giga watt (GW).

 

Interim Budget 2019: India has one of the world’s largest programmes to expand renewables--a doubling of capacity over the next four years--but India’s ambitious 2022 target of generating enough non-coal energy to replace the equivalent of 175 coal-powered plants is veering off track

On February 1, 2019, the ruling Bharatiya Janata Party (BJP) has a chance to get things back on track, help India reduce its addiction to coal, help clean the country’s air and meet the global climate-change commitments of the world’s fourth-fastest growing carbon polluter

After record growth in the installed capacity of renewables over the four years to 2017, capacity addition slowed down in 2018. The main reasons: an anti-dumping duty imposed by the government on imported solar modules to aid domestic manufacturing, higher rates of taxation under the goods and service tax (GST) and unclear policy.

So, the last budget before 2019 general elections is of particular significance to the renewables sector, which comprises electricity from solar, wind, hydro and bio power.

The upcoming budget can help remove policy uncertainties from the sector and provide “long-term indications”, Daanish Verma, executive vice president, sustainable investment banking, YES Bank, told IndiaSpend.

Read full News → Budget 2019 Expectations 

Explainer: What is an interim budget? What FM Jaitley can and cannot do

This will be the last Budget of the current BJP-led NDA government before the 2019 General Elections.

Interim Budget 2019: With just a few months left before the Narendra Modi government formally completes its tenure, Finance Minister Arun Jaitley will present NDA regime's first interim budget on February 1, 2019.

As this will be the ruling BJP government’s last budget before the upcoming Lok Sabha elections, here's an explanation of what an interim budget actually means.

What is an interim budget?

An interim budget is presented by a government which is going through a transition period or is in its last year in office ahead of the general elections. Traditionally, an incumbent government cannot present a full-fledged Union Budget in the election year. Instead, the Finance Minister presents an interim budget during the joint sitting of Rajya Sabha and Lok Sabha in the Parliament, the livemint reported.

With an interim budget, the incumbent government seeks a vote of approval from the Parliament to draw money from the Consolidated Fund of India to meet its budget expenses before the end of the financial year, i.e; March 31st, 2019. It is a traditional practice which takes place in the run-up to every general election, according to an India Today report.

The full-fledged Union Budget is presented by the newly-elected government after Lok Sabha polls. In recent times, interim budgets have been instrumental for the incumbent governments to list out their achievements to draw voters' support.

Read full news here → Union Budget 2019

Budget 2019: FinMin starts 'Know Your Budget' series to educate people on Twitter

The 'Know Your Budget' series, which explains the importance of Union Budget and its making, would continue for about a fortnight.

Interim Budget 2019: Seeking to educate general public about the budgetary process, the finance ministry Tuesday started a series on Twitter providing definitions of various terms used in the budget.

The 'Know Your Budget' series, which explains the importance of Union Budget and its making, would continue for about a fortnight.

The government on February 1 would unveil the interim Budget for 2019-20 as the general elections are due in the next couple of months. The Union Budget 2019 for the next fiscal would be presented by the new government.

The series which began on the ministry's Twitter handle on Tuesday explained what is Union Budget and Vote on Account.

The Budget, the ministry explains, "is the most comprehensive report of the government's finances in which revenues from all sources and outlays for all activities are consolidated.

Read full news here → Budget 2019

To bridge fiscal deficit, RBI likely to pay govt $5.8 bn interim dividend

The dividend could help Prime Minister Narendra Modi's administration bridge a widening budget deficit following a drop in tax collections.

Interim Budget 2019: The Reserve Bank of India (RBI), having changed management last month following a clash with the government, is likely to transfer an interim dividend of Rs 300-400 billion ($4.32 billion-$5.8 billion) to the government by March, according to three sources with direct knowledge of the matter.

The dividend could help Prime Minister Narendra Modi's administration bridge a widening budget deficit following a drop in tax collections, and would come after the government pushed the RBI for the additional funds ahead of a national election due by May.

Former finance ministry official Shaktikanta Das was appointed as the new governor of the Reserve Bank of India (RBI), following resignation of Urjit Patel last month amid tensions over the dividend payout and other issues.

The government and RBI have now appointed a panel to look into the issue around the sharing of the RBI's reserves.

"We are absolutely sure that an interim dividend of more than 300 billion rupees would be paid before March end," one of the sources told Reuters.

Read the full news here → Union Budget 2019

99.3% of demonetised notes are back; Rs 15.31 trillion returned: RBI

500- and 1000-rupee notes worth Rs 15.41 trillion were demonetised.

DeMonetisation News: As many as 99.3 per cent of the old 500 and 1,000 rupee notes, that was banned overnight in November 2016, have been returned, the Reserve Bank of India said in its annual report.

Of the Rs 15.41 trillion worth 500 and 1,000 rupee notes in circulation before November 8, 2016, notes worth Rs 15.31 trillion have been returned.

The "humungous task of processing and verification of specified bank notes (SBNs) was successfully achieved," it said.

The SBNs received were verified, counted and processed in the sophisticated high-speed currency verification and processing system (CVPS) for accuracy and genuineness and then shredded, it added.

SBNs refer to the demonetised old 500 and 1,000 rupee.
RBI said the processing of SBNs has since been completed. "The total SBNs returned from circulation is Rs 15,310.73 billion".

Read the annual report on → DeMonetisation

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News Source: BS

Do you have an EMI? RBI rate hike to make your borrowings more expensive

The RBI raised interest rates to the highest in 2 years to tackle inflationary pressures.

RBI Policy: Planning to take a loan? You should not wait any longer. EMIs (equated monthly installments) on home, personal, auto and other loans are set to get costlier as the Reserve Bank of India (RBI) increased the repo rate by 25 basis points to 6.5 per cent from the previous rate of 6.25 per cent. The RBI has also raised the reverse repo rate by 25 basis points to 6.25 per cent. The decision was taken during the RBI’s Monetary Policy Committee’s (MPC) bi-monthly meeting on Wednesday.

In its last monetary policy meeting on June 6, the RBI had already increased the repo rate by 25 bps (basis points). Headed by governor Urjit Patel, the central bank raised key policy rates to the highest in two years for the second time in a row in last two months to tackle inflationary pressures. Over the last two bi-monthly MPC review meetings; there has been a total of 50 bps increase in the repo rate. The second-consecutive increase in repo rate comes as a shocker for those who are already paying EMIS, taken loans from banks or are planning to borrow in future.  RBI Rate Hike

You should be concerned about repo rate hike because it will directly affect your EMIs as banks will soon increase their lending rates. The repo rate has a direct impact on bank’s cost of borrowing from the central bank, that means the banks will raise their MCLR (Marginal Cost of Funds based Lending Rate) or charge more interest on loans. Hence, it makes costlier for lenders (banks) to borrow money. As the interest rate of loans is linked to the MCLR, repo rate surge causes a hike in interest or lending rates. Home loan borrowers will be affected to a great extent as housing loans are taken for a longer duration. In fact, since the beginning of this year, several banks have been increasing their MCLR rates, said a Livemint report.

New loan borrowers will have to bear the impact of increased interest rates on loans. RBI's second consecutive rate hike since October 2013, is likely to prompt action by banks or react to the policy decision, hence, EMIs will become expensive for potential loan seekers to borrow funds in future. If you cannot afford to pay higher EMIs, then you can prefer to borrow loan under the...continue reading

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News Source: BS

RBI Policy Review: RBI increases repo rate by 25 bps to 6.25%; maintains neutral stance

The central bank’s April policy tone was dovish and it had actually lowered inflation forecasts for the first and second half of 2018-19.

 

RBI Monetary Policy → The six-member monetary policy committee (MPC) unanimously voted for a rate hike, citing the fear of inflation, partly flared by the recent spike in crude oil prices. The hike in policy repo rate to 6.25 per cent from 6 per cent was contrary to market expectation that the central bank will hold rates and the unanimous decision came as a surprise to the markets.

The central bank’s April policy tone was dovish and it had actually lowered inflation forecasts for the first and second half of 2018-19. On Wednesday, the inflation outlook was revised up once again.

With the hike in the June policy, the Reserve Bank of India (RBI) has reversed the rate cutting cycle it had engaged in since January 15, 2015. The last rate hike happened on January 28, 2014, when the repo rate was increased to 8 per cent. The last policy action was in August 2017, when the central bank had lowered the repo rate by 25 basis points (bps).

Even as the central bank kept its stance ‘neutral’, the bond market saw the policy statement as hawkish, expecting at least one more rate hike soon. The 10-year gilt yield, which had already factored in a 25-bp repo rate hike in rates, jumped 8 bps after the policy announcement. The 10-year gilt yield closed at 7.92 per cent, up from its previous close of 7.83 per cent.

Wednesday’s policy statement showed that the MPC was clearly concerned about rising prices, and, importantly, households’ expectations about the future course of prices. The May 2018 round of the RBI’s survey of households reported a significant rise in households’ inflation expectations of 90 bps and 130 bps, respectively, for three-month and one-year ahead horizons.

This “significant rise” in households’ expectations, “could feed into wages and input costs in the coming months”, the RBI’s policy statement noted.

Once again changing its inflation forecast, from 4.7-5.1 per cent for the first half and 4.4 per cent in the second half, to 4.8-4.9 per cent and 4.7 per cent, respectively, the RBI said it had not anticipated a 12 per cent rise ($66 to $74 a barrel) in the Indian basket of crude oil between the April and June policies.

Retail inflation rose sharply to 4.6 per cent in April from 4.3 per cent in March. Core inflation, which includes food and fuel, remained consistently high at 5.8 per cent in April, up from 5.23 per cent in March.

Also Read → RBI Policy Review

From 2016 to 2018, life of a Rs 2,000 note; All you need to know

The supply of Rs 2,000 notes has also been reduced substantially since April 2017.

Latest News : For a long time, the government and the Reserve Bank of India were silent on the supply and printing of Rs 2,000 notes. Without clarifying when the printing of Rs 2,000 notes were discontinued, the government recently said supply of these notes in the system were adequate. Business Standard takes a look at the journey of the high-value currency note that was introduced in November 2016 when the government had announced demonetisation of old Rs 500 and Rs 1,000 notes.

2016

• August: RBI’s printing press Bhartiya Reserve Bank Note Mudran Private Limited starts printing Rs 2,000 notes
• November: Prime Minister Narendra Modi announces demonetisation of Rs 500 and Rs 1,000 notes; Rs 2,000 notes are soon supplied in the market
• December: Rs 2,000 notes worth Rs 3,216 billion pumped into the system till December-end; about 58 per cent of the total notes supplied after demonetisation

2017

• March: Rs 2,000 notes amounting to Rs 7,008 billion printed till March 31; RBI’s annual report says Rs 6,570 billion worth notes of Rs 2,000 were in circulation (about 50% in value)
• December: The government says Rs 2,000 notes worth Rs 7,309 billion printed till December 15, indicates no new Rs 2,000 note printed for a while

2018

• February: Minister of State for Finance Pon Radhakrishnan tells Lok Sabha only small denomination currency notes being printed at present.
• On April 17, Economic Affairs Secretary Subhash Garg said Rs 2,000 notes worth Rs 6,750 billion in the system “sufficient” so printing of Rs 2,000 has been halted “since a few days”

Also Read About  → Cash Crunch in India

RBI may be holding back Rs 2,000 notes or stopped printing them

High-value notes worth Rs 2.46 lakh cr not released, says the report

 

The Reserve Bank of India (RBI) may either be holding back Rs 2,000 notes or could have stopped printing high denomination currency, says a SBI Research report.

Juxtaposing the data presented in the Lok Sabha recently with the one provided by RBI in its Annual Report earlier, the SBI Ecoflash report said today, “we observe” that the value of small denomination currency in circulation up to March 2017 was Rs 3,501 billion.

This implies that the value of high denomination notes was equivalent to Rs 13,324 billion as on December 8, after netting out the small denomination notes from the currency in circulation on that day, it said.

The report further said that as per the Ministry of Finance in the Lok Sabha recently, the RBI has printed 16,957 million pieces of Rs 500 notes and 3,654 million pieces of Rs 2,000 notes as on December 8. The total value of such notes translates into Rs 15,787 billion.

“This means that the residual amount of high currency notes (Rs 15,787 billion Rs 13,324 billion) of Rs 2,463 billion may have been printed by the RBI but not supplied in the market,” said the report authored Soumya Kanti Ghosh, group chief economic adviser, SBI.

Interestingly, the report added, “it is safe to assume” that Rs 2,463 billion may be on the lower side as the RBI must have printed notes of small denomination in the interregnum (Rs 50 and Rs 200).

“As a logical corollary, as 2000 denomination currency led to challenges in transactions, it thus indeed seems that RBI may have either consciously stopped printing the 2000 denomination notes/or printing in smaller numbers after initially it was printed in ample amount to normalise the liquidity situation,” said Ecoflash.

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Tweaks in Insolvency and Bankruptcy Code to block wilful defaulters

Cabinet clears ordinance to make it difficult for many promoters to take back insolvent firms

 

Business News India : Wilful defaulters, dubious promoters as well as those involved in fraudulent transactions would not be able to bid for companies going insolvent, with the Centre deciding to amend the Insolvency and Bankruptcy Code.

The Cabinet approved an ordinance on Wednesday. The amendments would come in force with immediate effect (after the President promulgates it), Finance and Corporate Affairs Minister Arun Jaitley said after the meeting.

The ordinance was necessitated as the winter session of Parliament will begin in the middle of December, and a number of insolvency cases are coming up for bidding. Apart from adding a new section that tightens bid guidelines, the government has tweaked a few other sections in the existing Code.

Wilful defaulters, responsible for non-performing assets (NPAs) for over a year, would be prohibited from taking over an insolvent company again. Experts say it usually takes one year after an account is declared NPA to term a promoter a wilful defaulter. The one-year NPA clause was not standard in the Reserve Bank of India’s definition.

However, a senior banker said investigations and follow-ups before declaring someone a wilful defaulter usually takes more than a year. The ordinance could be formalising the timeframe, so that banks cannot arbitrarily declare someone a wilful defaulter before due process is over.

An account is termed NPA when an interest rate or instalment on the principal of a term loan is not paid for over 180 days. There are specific timeframes for non-payment of agricultural dues, overdraft, bills, etc, to term an account as bad debt. A wilful defaulter is the one who does not pay back even when he is able to do so, diverts the loan for other uses or disposes off the collateral without the knowledge of lenders.

Click to Know → ‪Insolvency and Bankruptcy Code of India

RBI rejects Islamic banking in India, says equal access available to all

Islamic or Sharia banking is a finance system based on the principles of not charging interest, which is prohibited under Islam.

In a major move, the Reserve Bank of India (RBI) has decided not to pursue a proposal for introduction of Islamic banking in the country.

Replying to an RTI query, the central bank said the decision was taken after considering "the wider and equal opportunities" available to all citizens to access banking and financial services.
Islamic or Sharia Banking is a finance system based on the principles of not charging interest, which is prohibited under Islam.

The issue of introduction of Islamic banking in India was examined by the RBI and the government of India, it said.

"Taking into account, the wider and equal opportunities available to all citizens to access banking and financial services, it has been decided not to pursue the proposal further," the central bank said in its reply to the RTI application filed by this PTI correspondent.

The RBI was asked to provide details of steps being taken for the introduction of Islamic or 'interest-free' banking in India.

Prime Minister Narendra Modi had on August 28, 2014, launched Jan Dhan Yojana, a national mission to bring about comprehensive financial inclusion of all the households in the country.

In late 2008, a committee on Financial Sector Reforms, headed by former RBI governor Raghuram Rajan, had stressed on the need for a closer look at the issue of interest-free banking in the country.

List of Upcoming bank and government exams in 2017

The candidate should be careful while filling out the application

Latest News :  More than 1.5 crores candidates took up the bank exams of IBPS (Institute of Banking Personnel Selection) in the last three years and vacancies in the Indian banks equaling 68000 were occupied.

When it comes to making a career choice that promises security and financial stability, bank jobs in India have always been roped in first. Public sector banks are getting a tough competition from private banks. As a result, they are reaching out to rural and semi-urban areas. Despite the rise of Information Technology, millions of people still prefer bank jobs and apply for various positions in public sector banks.

Here’s the list of upcoming bank exams and jobs in 2017. It also features other government exams.

Listed are the important details regarding the bank exams and jobs for the year 2017-18:

Particular (Exams)	No. of posts	Apply on or before	Date of Examination
State Bank of India Management Executives Recruitment	554	May 18	June 18
RBI Grade B Officer Recruitment 2017  (GEN 77, OBC 52, SC 26, ST  8)	161	May 23	June 17
IBPS Exams Calendar 2017 (Click here for viewing the calendar)		TBA	TBA
SSC Exam Calendar 2017 (Click here to view the calendar) (www.ssc.nic.in)			2017

How to Apply for SBI Management Executive Recruitment:

An aspiring candidate should have their valid active email ID for better communications regarding results other important announcements. It helps them receive Call Letter/Interview Advices and other important documents by email. The candidate has to register online through the Bank’s website https://bank.sbi/careers and www.sbi.co.in/careers and pay the application.

The candidate should scan their latest photograph and signature. This is essential for online application otherwise the application would be invalidated.

The candidate should go the bank’s website (www.bank.sbi/careers/) and (www.sbi.co.in/careers). In the Recruitment link, select the suitable online application format.

The candidate should be careful while filling out the application. Once the application is filled in completely, he or she should submit the data. (read more...)

Note ban: You can withdraw Rs 50,000 from your savings accounts from today

Govt, RBI had imposed limits on withdrawal of money due to shortage of currency following note ban

 

 

Breaking News - The weekly limit on withdrawal of cash from savings bank accounts will be increased to Rs 50,000, from the current Rs 24,000, from Monday, and the limit will be removed from March 13.

"Effective February 20, 2017, the limits from cash withdrawal limit from savings bank accounts will be enhanced to Rs 50,000 per week from the current limit of Rs 24,000 per week (and) effective March 13, 2017, there will be no limits prescribed by RBI on cash withdrawal from savings bank accounts."

The Government and RBI had imposed limits on withdrawal of money from ATMs and bank branches in view of the currency shortage following demonetisation.

These limits, however, are being gradually eased, with RBI pumping in new notes of Rs 500 and Rs 2,000. (read more...)

Petrol pumps to stop accepting card payments from tomorrow

With 4 major banks deciding to charge for these from today, dealers say they have no other choice

Latest News - Following a decision by four banks to levy a charge for every sale on a credit or debit card, two petroleum dealer associations have decided not to accept any card transactions at fuel retail outlets from Monday.

The decision covers a majority of the 56,000 outlets in the country. The four banks are HDFC, Axis, ICICI and Punjab National Bank.

"We have been informed by these four banks that we will be charged one% on all credit card transactions and between 0.25% and one% on all debit card transactions from January 9. Reports suggest even State Bank of India is planning to charge the same. We feel banks are using this as an excuse to improve their bottom line through transactions at fuel stations.

Hence, we have decided not to accept any card transactions from Monday," A D Sathyanarayan, president of the Consortium of India Petroleum Dealers, told this newspaper.

Dealers say a 1% charge would mean 30% of the gross dealer margin on petrol and 40% on diesel. "Our margins will be wiped out if we accept this. We have specific mechanisms to compute the margin and these do not have any scope for credit card merchant discount rates," Sathyanarayan added.

Read Article Source>>>

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Demonetisation: Rs 50,000 as penalty for possessing old notes after Dec 30?

Possession of old notes after December 30 may invite penalty of over Rs 50,000

Breaking News - The government is mulling an ordinance to bring a new law under which possessing, transferring or receiving over Rs 10,000 in banned 500 and 1,000-rupee notes post December 30 will be a punishable offence for possessing old notes after Dec 30.

Reports said that there could be a cap of holding no more than 10 notes of each after December 30 and violation of the rule could draw a fine of a minimum of Rs 50,000 or 5 times the amount in question -- whichever is higher, but there was no confirmation. There will be a criminal liability and a municipal magistrate will hear cases involving violation and decide on penalty.

 

Holders of such currency have an option to deposit them in RBI by March 31 but even that period may be curtailed, they said.O

Of the Rs 15.44 lakh crore worth of 500 and 1000 rupee notes in circulation on November 8, close to Rs 13 lakh crore have been deposited in accounts or exchanged for valid currency.

There was no official word on the move which is likely to come up before the Cabinet on Wednesday.

Read Article Source>>>

 

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GPS chips and radioactive ink in new notes: Top 10 fake news in 2016

Along with India's national anthem being declared the 'Best National Anthem In The World'

Breaking News - From currency to salt–very little escaped the reach of fake news in 2016. Rumours spread from WhatsApp and other social media into the mainstream media. Institutions such as the United Nations Educational, Scientific and Cultural Organization (UNESCO), and the Reserve Bank of India (RBI) had to step in and tell us what was true. Even Facebook and Google, two of the world’s biggest Internet companies, sat up and took notice.

Such news can have widespread reach: India is one of the biggest markets for several social media and communication companies–it has 160 million of WhatsApp’s one billion-plus monthly active users, 148 million Facebook users, and over 22 million Twitter accounts.

Here are some of the most popular Indian fake news stories of 2016:

1. UNESCO declares PM Modi best Prime Minister

2. UNESCO declares Jana Gana Mana best national anthem

3. UNESCO declares new Rs 2,000 note best currency in the world

4. New notes have a GPS chip to detect black money

5. New notes have radioactive ink

6. WhatsApp profile pictures can be used by ISIS for terror activities

7. RBI declares the Rs 10 coin invalid

8. Jayalalithaa’s ‘secret daughter’ and heir lives in the US

9. Salt shortage in India

10. “Nehru Govt has stood like a Banyan Tree”: Mark Tully

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Be Updated on Stock Market News  &  Latest Business News| Business Standard

Full text: RBI exempts all KYC accounts from Rs 5,000 deposit norms

Central bank Withdraws provisions for questioning deposits in in fully KYC-compliant bank accounts

News Latest The Reserve Bank of India on Wednesday exempted Know Your customer (KYC) compliant accounts from the new rules on deposits of above Rs 5000 .

No questions will be asked for deposits of old notes of Rs 500 and Rs 1,000 above Rs 5,000 for KYC accounts.

Breaking news, In a message sent to all banks,  the RBI said it had reviewed its instructions and decided that the rule will not apply to KYC-compliant accounts.

RBI had earlier imposed restrictions on the quantum of old notes that can be deposited in bank accounts.Old notes up to the Rs 5,000 limit received across the counter would be allowed to be credited into bank accounts in the normal course until December 30, the RBI had clarified. In the due course of Demonetisation, RBI had also said that the depositor has to give an explanation as to why the old notes were not deposited earlier. The amount will be credited in the bank account only after receiving a satisfactory explanation.

Analysts had said the move would add to the woes of those still waiting to deposit old notes. However, officials said people with money that was accounted for had no cause to worry.

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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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