Earlier, there was never a possibility or a chance to edit the rules of RBI. Right next to the demonetization showers of changes are observed deliberately. So, here is the modification of the day, this change is considered as the 60th edit which means precisely two changes in the rules are observed every day.
Weeks ago, Reserve Bank of India and Finance Ministry together stated that one can firmly deposit Rs 5000 with respective proof and proper explanation regarding ‘late deposits’ to two bank officials.
It is said that approximately 126 new amendments were carried out as the new rules.
After these many changes, in a circular issued to banks on Wednesday, the RBI said it was revoking the restrictions after reviewing the case. “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,” RBI said.
The circular clearly states that only after receiving a satisfactory reply the amount will be credited to the individual’s account. It also added that deposits less than Rs 5000, but cumulatively exceeding the limit, will also be duly scrutinised.
However, the money deposited would be only credited to KYC complaint accounts, it said. and the deadline for such deposits has remained December 30 as it is said earlier.
Meanwhile, the Finance Minister Arun Jaitley clarified that the multiple deposits in the same amount might gain attention from the tax departments and will be probed.
The updated RBI directive ended up under the heavy criticism from the Opposition parties.
“RBI is changing rules like the PM changes his clothes” tweeted the Congress vice-president Rahul Gandhi.
Full text of the RBI circular issued today:
“Please refer to our circular DCM (Plg) No. 1859/10.27.00/2016-17 dated December 19, 2016. On a review of the above, we advise that the provisions of the above circular at sub para (i) and (ii) will not apply to fully KYC compliant accounts.”
Here is the first circular:
“On a review of the provisions ii, iii and iv at C of Para 3 dealing with credit of the value of SBNs into bank accounts it has been decided to place certain restrictions on deposits of SBNs into bank accounts while encouraging the deposits of the same under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016 as indicated below:
- Tenders of SBNs in excess of ₹ 5000 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 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. The explanation should be kept on record to facilitate an audit trail at a later stage. An appropriate flag also should be raised in CBS to that effect so that no more tenders are allowed.
- Tenders of SBNs up to ₹ 5000 in value received across the counter will allow being credited to bank accounts in the normal course until December 30, 2016. Even when tenders smaller than ₹ 5000 are made in an account and such tenders have taken together on cumulative basis exceed ₹ 5000 they may be subject to the procedure to be followed in case of tenders above ₹ 5000, with no more tenders being allowed thereafter until December 30, 2016.
- It may also be ensured that full value of tenders of SBNs in excess of ₹ 5000 shall be credited to only KYC compliant accounts and if the accounts are not KYC compliant credits may be restricted up to ₹ 50,000 subject to the conditions governing the conduct of such accounts.
- The above restrictions shall not apply to tenders of SBNs for the purpose of deposits under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.
- The equivalent value of specified bank notes tendered may be credited to an account maintained by the tenderer at any bank in accordance with standard banking procedure and on the production of valid proof of Identity.
- The equivalent value of specified bank notes tendered may be credited to a third party account, provided specific authorization therefor accorded by the third party is presented to the bank, following standard banking procedure and on production of valid proof of identity of the person actually tendering, as indicated in Annex-5 of our circular cited above.”