People queue outside the Reserve Bank of India to deposit and exchange 500 and 1000 currency note. Photograph: (AFP)
Know-Your-Customer (KYC) compliant account holders can now deposit over Rs 5000 without any questions asked
The Reserve Bank of India has modified old currency deposit rules once again, Know-Your-Customer (KYC) compliant account holders can now deposit over Rs 5,000 without any questions asked.
RBI had said on Monday old notes exceeding Rs 5,000 can be deposited only once per account till December 30. It said that the depositor will also have to give an explanation as to why the old notes were not deposited earlier, according to PTI.
RBI added that the explanation should be kept on record to facilitate an audit trail at a later stage.
Further, RBI said that even if deposits are below Rs 5,000, if the cumulative deposit exceeds Rs 5,000, "they may be subject to the procedure to be followed in case of tenders above Rs 5,000".
RBI also said that deposits above Rs 5,000 can be credited only into KYC-compliant accounts and "if the accounts are not KYC compliant credits may be restricted up to Rs 50,000 subject to the conditions governing the conduct of such accounts", PTI reports.
However, RBI has said that the restrictions shall not apply to deposits under the Pradhan Mantri Garib Kalyan scheme, 2016.
"It has been decided to place certain restrictions on deposits of specified bank notes into bank accounts while encouraging the deposits of the same under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016," RBI said in a notification.
Under the scheme, black money holders can deposit unaccounted cash in an account which will be subject to 50 per cent tax, which breaks down into 30 per cent tax, 33 per cent surcharge and 10 per cent penalty, and 4-year interest-free lock-in for the remaining 25 per cent of the amount.
(WION with inputs from PTI)