Planning to make any large deposits of the scrapped notes before the looming December 30 deadline? You may run into trouble, as the government has capped the number of times you can deposit money above Rs 5000 to just one.
In the notification, drafted on December 17, it was mentioned that depositor, with an amount higher than Rs 5,000 in old notes, will be questioned on record by two bank officials.
People wishing to make a deposit less than Rs 5000 can do more than once, just as they have done before, the government said. But if the sum of those deposits exceed Rs 5000, the depositors “may be subject to the procedure” as described above for those who deposit more than Rs 5000.
The depositor will be questioned, “As to why this could not be deposited earlier”. The explanation should be kept on record to facilitate an audit trail at a later stage, the order stated.
The rules do not apply to those who deposit the scrapped notes under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.
Furthermore, the accounts which are not KYC compliant may have a cap of Rs 50,000 for the one-time deposit above Rs 5000.
Tenders of SBNs in excess of Rs5000 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.
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 Rs 5000, with no more tenders being allowed thereafter until December 30, 2016.
It may also be ensured that full value of tenders of SBNs in excess of RS 5000 shall be credited to only KYC compliant accounts and if the accounts are not KYC compliant credits may be restricted up to 50,000 subject to the conditions governing the conduct of such accounts.
The above restrictions shall not apply to tenders of SBNs for the purpose of deposits under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.
The equivalent value of specified bank notes tendered may be credited to an account maintained by the tenderer at any bank in accordance with standard banking procedure and on production of valid proof of Identity.