New restriction on deposit of Specified Bank Notes (old Rs.500/- & Rs.1000 notes) into bank accounts

RBI has today (19/12/2016)placed certain restrictions on deposits of SBNs into bank accounts. Under the new rule, the 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. The question line will be why this could not be deposited earlier and the explanation will be kept on record to facilitate an audit trail at a later stage. Further, an appropriate flag also should be raised in CBS to that effect so that no more tenders are allowed.

The 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 are restricted up to ₹ 50,000 subject to the conditions governing the conduct of such accounts.The same rule is applicable when SBNs credited to a third party account, subject to specific authorisation from the account holder to credit the amount to his/her account on the production of valid proof of identity of the person actually tendering the notes.

The curb is not applicable for the deposits under PMGKY 2016.RBI  communique said that the above restriction is  to encourage the deposits of the undisclosed money under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.