RBI takes U-turn, no enquiries for deposits above Rs 5000 demonetised notes

After facing a public backlash, RBI came with a fresh notification on Wednesday, saying it has withdrawn the earlier circular, which made it mandatory for the depositors to reveal the source and also to explain to at least two bank officials, why they have not deposited the notes earlier.

RBI takes U-turn, no enquiries for deposits above Rs 5000 demonetised notes

The Reserve Bank of India (RBI) on Wednesday withdrew its earlier circular on cash deposits over Rs 5000 demonetised notes, and said there will not be any enquiries on such deposits above Rs. 5,000.

After facing a public backlash, RBI came with a fresh notification on Wednesday, saying it has withdrawn the earlier circular, which made it mandatory for the depositors to reveal the source and also to explain to at least two bank officials, why they have not deposited the notes earlier.






"On a review... , we advise that the provisions of the above (previous) circular at sub para (i) and (ii) will not apply to fully KYC compliant accounts,"the New Indian Express quoted a senior RBI official.

The government has announced on Monday to deposit all demotesided notes in one go, adding all deposits above Rs 5000 will be probed by the IT department.


"If you have old currency, deposit it with banks at one go as repeat deposits of such notes raise doubts," Finance Minister Arun Jaitley said in a press conference.

Jaitley also urged people to deposit the demonetised notes as only 10 days are left for the deadline people to only 10 days were left for the December 30 deadline announced by the government.

However, government came under severe criticism from people that it has backtracked from earlier announcement which stated December 30 as the deadline to deposit banned notes. Government sources, said it has been five months, since Prime Minister Modi cane with the demonetisation and government has given sufficient time for people to deposit the banned notes in bank accounts.

After demotisation was announced, 86 % of currency was moved out from circulation, added RBI.