Press Information Bureau

Government of India

Ministry of Finance

19-December-2016 16:24 IST

The deposits of old notes of ₹ 500 and ₹ 1000 denominations have been reviewed by the Government from time to time. Already more than five weeks have elapsed since the time of the announcement of the cancellation of the legal tender character of these notes. It is expected that, by now, most of the people would have deposited such old notes in their possession. Keeping this in view and to reduce the queues in the banks, it has now been decided that amounts exceeding ₹ 5000 in old notes can be deposited only once between now and 30th December, 2016. The banks have been advised to conduct due diligence regarding the reasons for not depositing these notes earlier. Amounts of ₹ 5000 or less may continue to be deposited with banks in the customer’s account, as at present. However, cumulative deposits exceeding ₹ 5000 between 19th and 30th December, 2016 will be as per the procedures advised by RBI in respect of deposits exceeding ₹ 5000 as stated above.

Further, an opportunity has been given to the public to make the payments towards tax, penalty, cess/surcharge and deposit under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) 2016 with the old bank notes of ₹ 500 and ₹ 1000 denomination upto 30th December, 2016.

A number of representations had been received from District Cooperative Central Banks (DCCBs) to allow them to deposit with their linked currency chests the old ₹ 500 and ₹ 1000 notes that had been collected by them between the 10th of November and 14th of November, 2016. An enabling notification to this effect has been issued. NABARD which supervises the DCCBs will conduct complete audit check of the Know Your Customer (KYC) documents of the individual customers who have deposited these notes or of the members of the Primary Agricultural Credit Society (PACS) who have deposited these notes. The details in this regard will be notified by RBI.

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MS/MSZ

Deposit restriction on old currency limits repeat high-value deposits to a single transaction before deadline and requires bank due diligence. Deposits of demonetised Rs. 500 and Rs. 1000 notes above five thousand rupees may be deposited only once before 30 December 2016, subject to bank due diligence; deposits at or below five thousand rupees continue as before, while cumulative deposits exceeding five thousand rupees in the interval must follow RBI procedures. Payment of taxes, penalties, cess/surcharge and deposits under the PMGKY 2016 using old notes is permitted up to 30 December 2016. DCCBs may deposit notes collected 10-14 November 2016 with currency chests and NABARD will audit KYC records as notified by RBI.