RBI withdraws one-time deposit norm, Rs 5,000 limit for KYC-accounts


New Delhi, Dec 21 (IANS): The Reserve Bank of India (RBI) in a sharp U-turn on Wednesday withdrew the circular for KYC-compliant accounts that barred people from depositing over Rs 5,000 in old currency more than once till December 30.

The central bank said that on reviewing its notification of November 19, it is advising banks to withdraw the two conditions for fully KYC-compliant accounts.

On November 19, the RBI had announced that deposits of demonetised Rs 500 and Rs 1,000 notes in excess of Rs 5,000 will be allowed only once till December 30 -- that too after strict scrutiny.

On Monday night, Finance Minister Arun Jaitley had said that one-time deposit till December 30 will not invite scrutiny by bank officials.

According to the earlier notification, when a person deposits over Rs 5,000 in withdrawn currencies, the account will be credited only after questioning him or her, in the presence of two bank officials, as to why the notes had not been deposited earlier. The bankers were to keep the explanatory statement on record for a future audit trail.

The decision created confusion, when Jaitley contradicted the RBI notification, saying people will not be questioned if any amount of old currency is deposited in one go, but repeated deposits may provoke queries.

  

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Comment on this article

  • kp, mlore

    Thu, Dec 22 2016

    Petrol rich Venezuela's ban on 100 bolivar is the same as BJP rupee demonetization. Cash crisis in Venezuela will be the same as cash crisis in India. Acche din aa gaye.

    DisAgree Agree Reply Report Abuse

  • SMR, Karkala

    Wed, Dec 21 2016

    Indians should thank Subramanian Swamy for all this mess,who is responsible for overthrowing Raghuram Rajan.

    Ambani's hand pick Urjit Patel seems to be costly for India.

    Jai Hind

    DisAgree [3] Agree [25] Reply Report Abuse

  • urfrnd, MANGALORE

    Wed, Dec 21 2016

    when ever a cricket match is on TV, or radio,we see a lot of guys commenting about the captains or players.They will be heard saying. " he should have done this or that or played back foot or swung or used a spinner , fast bowler etc." Most of these guys will be autorckshaw drivers, Nukkad guys, or office goers or plain arm chair cricketers. I am sure most of these guys would not have touched a cricket bat or faced a fast red ball commming their way in their life.
    If we hear their comments it seems they can be the best ors for the Indian cricket team.
    THe RBI and IT and Fin ministry is not full of idiots.In their wisdom they have seen the way the way the blackmarketers and their Bank friends have looted the country after Nov 8th and are trying to make it difficult for them by changing the rules suitably .
    This is called strategic course correction or a management tactic. People making foolish comments against this are either ignorant or friends and well wishers of blackmoney guys, who want to scuttle the efforts . Please DONT Play Politics

    DisAgree [34] Agree [5] Reply Report Abuse

  • Kumar, Udupi

    Wed, Dec 21 2016

    Yes. Government has taken lot of U turns, left, right Turns. But Why this happened. Only because Some Bank staff and Black Money hoarders playing the existing rules. I am not BJP supporter. But I support Denomination.Because I can See in my surrounding Who is really crying and who is happy after Nov 8. But I do agree unless big fishes not get into trouble, till then Denomination will not be considered fully successful.

    DisAgree [5] Agree [25] Reply Report Abuse

  • Golmal, Kudla

    Wed, Dec 21 2016

    Before demonetization there was black money...
    After demonetization there is no black money anywhere in the country ...
    Ottreashi bankdakulu onthe kaas maltherge...

    DisAgree [3] Agree [20] Reply Report Abuse

  • Dev Kumar, Nagpur

    Wed, Dec 21 2016

    BJP is considered to be a poor people's party.

    DisAgree [18] Agree [10] Reply Report Abuse

  • Praveen, Udupi

    Wed, Dec 21 2016

    I wont be surprised today night at 8.00 pm another change will take place...I used to say many times this Modi Govt is a "L" board Govt without any expirence in any field.

    DisAgree [4] Agree [47] Reply Report Abuse

  • Vincent Rodrigues., Frazer Town,Bangalore

    Wed, Dec 21 2016

    Reserve Bank is not stable and not consistent in its decision which is quite speculative

    DisAgree [3] Agree [30] Reply Report Abuse

  • kas, Mangalore

    Wed, Dec 21 2016

    This is the 60 th instruction after note bandi ....

    DisAgree [2] Agree [24] Reply Report Abuse

  • Sunil K, Mangalore

    Wed, Dec 21 2016

    RBI is in reverse gear after U-rjit Patel became governor. Do they feel that they are playing a game of monopoly ? This is real life and playing with the livelihood of Indians is not a joke.

    DisAgree [3] Agree [58] Reply Report Abuse

  • R Bhandarkar, Mangaluru

    Wed, Dec 21 2016

    Somebody said Reverse Bank Of India.
    I agree. Do you?

    DisAgree [3] Agree [78] Reply Report Abuse

  • kas, Mangalore

    Wed, Dec 21 2016

    100 % agreed

    DisAgree Agree [32] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Wed, Dec 21 2016

    I may have to agree with you today. But, till Raghuram Rajan was there, it was one of the best governed central banks in the world.

    DisAgree [2] Agree [52] Reply Report Abuse

  • Desha bhaktha, Mangalore

    Wed, Dec 21 2016

    After demonitization, now black money is only with Bankers...
    Bumper crop for bankers...
    Those who cant earn in entire service got booty in a months time...

    DisAgree [2] Agree [43] Reply Report Abuse

  • RonRon, Udupi

    Wed, Dec 21 2016

    Reverse Bank of India

    DisAgree Agree [44] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Wed, Dec 21 2016

    Joeseph Gonsalves is always right.
    Cattle class governance by T class.
    Force is not the weapon or ultimatum. You need to have some skillful ways to go ahead with smooth governance.

    DisAgree [3] Agree [41] Reply Report Abuse

  • KADALA MAGE, MANGALORE

    Wed, Dec 21 2016

    FEKU , KETLI AND PUPPET RBI GOVERNOR ARE CONTROLLING THE GOVERNMENT!!!!

    DisAgree [5] Agree [49] Reply Report Abuse

  • Robert, Mangalore

    Wed, Dec 21 2016

    No one messes up with Joe...

    DisAgree [1] Agree [23] Reply Report Abuse

  • KADALA MAGE, MANGALORE

    Wed, Dec 21 2016

    SOON RESERVE BANK OF INDIA TO BE CHANGED TO "REVERSE BANK OF INDIA"
    COMEDY OF ERRORS ..... This is called flip Flops.... Many rules are going to change... Government doesn't have any control on governance... This is just like providing medicine after the death!!!! Pity on government and RBI... full of fekuism .....

    DisAgree [3] Agree [53] Reply Report Abuse

  • Sumit Shanbhog, Manipal

    Wed, Dec 21 2016

    With 60 notification in 43 days, Government & RBI have ruined the life of poor and middle class whereas the politicians and businessmen have got away with their black money.

    DisAgree Agree [44] Reply Report Abuse

  • Robert, Mangalore

    Wed, Dec 21 2016

    Money Power ... Those who have it made it thru the crisis.. No impact.

    Those who are suffering are suffering more and no care attitude by NDA Govt.

    Wait for few nonsense speeches that we were successful by Modi later this week and praises by BJP Bakhts.

    DisAgree Agree [31] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Wed, Dec 21 2016

    Since public is very quiet the government (Modi) thinks that things are in his favor. There is public uprising etc. How long they can sustain and remain cool. Year end is approaching and it's high time to life limits or control over peoples savings accounts.

    Personally, I am facing lot's of problems and un easiness back in Mangalore because of cash crunch, Doctors bills, drivers salary home & other expenses. There is hardly any one to stand in the Queue or daily withdraw Rs. 2,000.-. Frankly, going through Hell. We do not need such blank leader.

    DisAgree Agree [69] Reply Report Abuse

  • Robert, Mangalore

    Wed, Dec 21 2016

    Well said.

    There is a nice write-up on Bloomberg with several details that explains the mess created and has no roll back or mitigation plan to minimise the impact.

    Shame on those who created this mess on Nov 8 2016.

    DisAgree Agree [38] Reply Report Abuse

  • ravi, mangalore

    Wed, Dec 21 2016

    changing three two four times rules daily & may bank also not aware some rules. now onward We take photocopy of news paper shows to bankers.he did u turn , right turn , left turn , back turn everything fully kichadi

    DisAgree Agree [47] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Wed, Dec 21 2016

    Sajjige & Bajil.

    Total confusion and useless implementation. Can't they do some homework or scrutiny before announcing any new implications.
    Are they ruling India or playing with public? Fighting corruption is Government responsibility and not to punish public they way they are doing now.

    DisAgree Agree [58] Reply Report Abuse

  • Af,,, mangalore

    Wed, Dec 21 2016

    if keep on doing this drama on poor people one day people will loose thier patience and start..

    DisAgree Agree [63] Reply Report Abuse

  • John R Lobo, Kaikamba

    Wed, Dec 21 2016

    AF,

    People already attacked SBI and Dena Bank branch in Gujarath....

    DisAgree Agree [57] Reply Report Abuse

  • Harish Hegde, Mangalore/Aramco

    Wed, Dec 21 2016

    Following the footsteps of India, Venezuela also adopted demonetization, but it turned out to be catastrophic.
    Venezuela Takes The Demonetisation Step, But Forced To Take It Back After Chaos & Death Of A Person.

    Our people are still quiet.

    DisAgree [1] Agree [44] Reply Report Abuse

  • Robert, Mangalore

    Wed, Dec 21 2016

    Only BJP Bakhts like you are quiet.

    Take a walk and talk to some people who have no money with them, cannot withdraw from Bank...

    You are hurting those who have been going thru pain.

    Look for the chaiwala ..

    DisAgree [1] Agree [37] Reply Report Abuse

  • Jacob Mendonsa, Melbourne/Australia

    Wed, Dec 21 2016

    Robert, I think U misunderstood about Mr. Hegde's Comments. As far as I know he is not a supporter of BJP.

    DisAgree Agree [18] Report Abuse

  • mohan, mangalore

    Wed, Dec 21 2016

    Gujarat model -

    DisAgree Agree [46] Reply Report Abuse

  • Amigo , Mangalore

    Wed, Dec 21 2016

    Hardik Patel would have been BETTER choice over.....????

    DisAgree [1] Agree [50] Reply Report Abuse

  • gm, mlur

    Wed, Dec 21 2016

    Kya chal raha hai? mere samaj ke bahar hai.... aaj dalo, kal nikalo, parsu aur dalo badh mein thoda dalo?

    DisAgree Agree [47] Reply Report Abuse

  • stan, udupi/dubai

    Wed, Dec 21 2016

    Govt of U Turns. They are totally confused and not finding a way out.

    DisAgree Agree [47] Reply Report Abuse

  • Krishna Kant, Mangalore/Moodbidri

    Wed, Dec 21 2016

    Only God can save our country from all the mess created by Modi and his gang, soon we will come to hear from Times Now etc we are back to ground zero back to 60 years.

    DisAgree [3] Agree [62] Reply Report Abuse

  • JJ, Mlore

    Wed, Dec 21 2016

    Now onwards we have to listen to news or read newspaper before visiting bank for any transaction.

    DisAgree [1] Agree [59] Reply Report Abuse

  • Praveen, Udupi

    Wed, Dec 21 2016

    This is called Good Governance by BJP.

    DisAgree [25] Agree [48] Reply Report Abuse

  • Hariprasad Hegde, Mangalore/Udupi

    Wed, Dec 21 2016

    if you are a really educated person then you please please stop commenting, because you have no clue what are the suffering of people like us since the drama as started.

    DisAgree [2] Agree [53] Reply Report Abuse

  • Praveen, Udupi

    Wed, Dec 21 2016

    Mr Hegde you didnt understand my statement correctly. What i mean to say is for BJP and Bhakts this is good governance and for common man its hardship and lots of inconvinience.

    DisAgree Agree [18] Reply Report Abuse

  • Jacob Mendonsa, Melbourne/Australia

    Wed, Dec 21 2016

    Hariprasad Hegde, I think U & some others misunderstood the meaning of the Comment posted by Praveen.

    DisAgree Agree [16] Reply Report Abuse

  • Vishal, Mangalore

    Wed, Dec 21 2016

    The Reserve Bank of India has not covered itself with glory by announcing a set of rules one day only to be reversed the next day. It looks really stupid that such things are happening at the country's apex financial institution. It is India's premier bank whose actions are watched by the whole world. And this has been happening at regular intervals. Looks like ad hoc decisions are taken without any serious thought. I feel we are clearly missing the expertise of Mr. Raghuram Rajan.

    DisAgree Agree [65] Reply Report Abuse

  • Robert, Mangalore

    Wed, Dec 21 2016


    It is a huge mess and no leadership

    DisAgree Agree [16] Reply Report Abuse

  • Sumit Shanbhog, Manipal

    Wed, Dec 21 2016

    Raghuram Rajan must have refused to toe the Govt line on demonitization and preferred to quit rather than be made a fool at the hands of this flip flop Govt.

    DisAgree Agree [43] Reply Report Abuse

  • Jossey Saldanha, Mapusa

    Wed, Dec 21 2016

    One step forward & two steps ...

    DisAgree Agree [72] Reply Report Abuse

  • ABDUL RAFIQ, UCHILA

    Wed, Dec 21 2016

    Both govt and RBI is fully confused. They don't know how to come out from this blunder. After opposition parties explained the difficulties of each notification, govt will realize the mistake and making U-turns. Govt have no idea at all about Economics. Shame.......

    DisAgree [2] Agree [64] Reply Report Abuse

  • Allen, Mangaluru

    Wed, Dec 21 2016

    Common citizens have to tolerate this Jokers Party for 3 more years!

    DisAgree [1] Agree [77] Reply Report Abuse

  • Arif, Mangaluru

    Wed, Dec 21 2016

    It is two and half years more. six months difference matters.

    DisAgree Agree [24] Reply Report Abuse

  • Amith, udupi

    Wed, Dec 21 2016

    Modi and jhootely have made RBI the Rebound Bank of India ..there is no credibility left with our banking system now ..Shame ..

    DisAgree Agree [72] Reply Report Abuse

  • Sumit Shanbhog, Manipal

    Wed, Dec 21 2016


    This government has become a headless chicken and absolutely has no clue which way it is heading.

    Now they have started playing cricket with hockey stick assuming football is being used to bowl.

    They have become a laughing stock in front global fraternity.

    DisAgree Agree [80] Reply Report Abuse

  • Suresh Naik, Moodbidri

    Wed, Dec 21 2016

    Shibu Dubai, this is the condition of Modi so stop praising and putting down kujli etc.

    DisAgree [1] Agree [50] Reply Report Abuse

  • Jacob Mendonsa, Melbourne/Australia

    Wed, Dec 21 2016

    Suresh Naik, Shibu from Dubai have not experienced the difficulty of standing in Q for hours together in the hot Sun to get their own money from their own bank account for their daily living.

    DisAgree Agree [38] Reply Report Abuse

  • habib, Mangalore

    Wed, Dec 21 2016

    Daily new riles new law joker party

    DisAgree [1] Agree [56] Reply Report Abuse

  • Harish Hegde, Mangalore/Aramco

    Wed, Dec 21 2016

    We already know this news...

    DisAgree [1] Agree [41] Reply Report Abuse

  • Ravi, Kapu

    Wed, Dec 21 2016

    VERY BAD Implementation....

    DisAgree [2] Agree [65] Reply Report Abuse

  • ABDUL RAFIQ, UCHILA

    Wed, Dec 21 2016

    @Ravi Kaup, thank got at least you agreed about bad implementation. Hope one day you will realize that, demonetization idea itself a wrong step.

    DisAgree [1] Agree [60] Reply Report Abuse

  • kas, Mangalore

    Wed, Dec 21 2016

    Not only BAD implementation......UNFAIR implementation also..... Modis business partners like Ambani, Adanis, BABA ....got huge patronage ...

    DisAgree Agree [22] Reply Report Abuse


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Title: RBI withdraws one-time deposit norm, Rs 5,000 limit for KYC-accounts



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