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…
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Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016
(The scheme for converting black money into white) The black money (undisclosed money) holders in India need not hoard them anymore. The Government of India has now brought a new scheme called ‘Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016’. Under the Scheme, any person who declares his/her undisclosed income under sub-section (1) of section…
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How to open bank account under e-KYC process
The customers, both deposit and borrowal accounts can open the bank account using OTP based e-KYC. The Reserve Bank made the amendments to ‘Principal Directions on KYC ‘(Know Your Customer (KYC)) Directions, 2016 (Master Direction No.DBR.AML.No.81/ 14.01.001/2015-16 dated February 25, 2016) with effect from December 8, 2016. In terms of the e-KYC amendments now made…
Read articleRestrictions on withdrawal of cash from PMJDY accounts
As a matter of precaution, banks are advised by RBI today (November 30, 2016) to observe the following measures in respect of PMJDY accounts. (i) The account holders who have fully complied KYC norms may be allowed to withdraw Rs.10000/-from their accounts in a month. However, based on the genuineness of withdrawals the branch manager may…
Read articleTemporary Cash holding limits at currency chest
In view of massive quantity of Specified Bank Notes (SBNs) accumulated in currency chests, RBI has revisited to its old instruction (circular. DCM (CC) No. 2598/03.02.05/2009-10 dated October 27, 2009) and advised banks that SBNs deposited in the currency chests, since November 10, 2016 will be considered as part of the chest balance in the…
Relaxation in withdrawal of cash from bank deposit accounts
RBI vide its notification dated November 28,2016, announced that the general public is allowed withdrawal of deposits made in current legal tender notes on or after November 29, 2016 beyond the current limits. The amount of cash will be made available preferably in higher denominations (₹ 2000 and ₹ 500/-) for such withdrawals. RBI communiqué says that…
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