RBI withdraws one-time deposit order

New Delhi : The Reserve Bank of India (RBI) in a 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.The RBI on Monday had imposed stiff restrictions on depositing more than Rs 5,000 in the scrapped Rs 500 and Rs 1,000 notes, mandating that it could be deposited only once per account till December 30, that too after explaining to bank officials the reasons for not having done that so far.
On Monday night, Finance Minister Arun Jaitley had said that one-time deposit till December 30 would not invite scrutiny by bank officials.
According to the earlier notification, when a person deposited over Rs 5,000 in withdrawn currency, the account would be credited only after questioning him or her in the presence of two bank officials as to why the notes had not been deposited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.