RBI’s notice restricting deposits above Rs 5000 has been withdrawn (and its new name)….

The Twitter is trending with RBI’s new name: Reverse Bank of India.

This is because the central bank has again tweaked its notice. This time it has rolled back previous notice which said deposits above Rs 5000 will be allowed only once that too under some stiff restrictions. End result was banks stopped accepting deposits above Rs 5000 asking for clarity on the matter. With clock ticking fast towards 30 Dec 2016 there was panic amidst those who were waiting for crowds and queues to lessen before despsiting their monies.

Now RBI has rolled back the notice. Even here central bank prefers to go to the older skills of writing these amazing notices:

Withdrawal of Legal Tender Character of existing ₹ 500/- and ₹ 1000/- Bank Notes (Specified Bank Notes) – Deposit of Specified Bank Notes (SBNs) into bank accounts- Modification

1. 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.

2. Please acknowledge receipt.

I mean that is it? One has to click on the previous circular to see details:

  1. 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.
  2. Tenders of SBNs up to ₹ 5000 in value received across the counter will allowed to be 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 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.

Phew!

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