RBI Withdraws Rs 5000 deposit limit: On December 19, 2016, the Reserve Bank of India has withdrawn a certain rule. This rule is the mandate for an explanation of the delay in depositing greater than Rs. 5000 old notes by depositors. The RBI relaxation is only for those customers who have done the KYC documents with their banks where they hold accounts.
On Wednesday, the Reserve Bank of India said, “Please refer to our circular (of 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.”There are many people who disliked the rule as they relied on the assurance given by PM Narendra Modi. He said they could deposit their old notes without any restrictions or questions when he announced the higher currency note ban on November 8th.
RBI Withdraws Rule of Rs 5000 deposit limit After Public Demand: Only KYC account holders exempted
The RBI (Reserve Bank of India) has taken back the December 19th rule about making it compulsory for depositors to give an explanation. The RBI had made it mandate for depositors to explain the reason for a delay in depositing greater than Rs. 5000 old notes into their bank accounts. With this new provision, the depositors who have completed their KYC with their banks will no longer have to give an explanation.
The letter issued by the Reserve Bank of India on Wednesday was a slight relief for some people. Depositors were questioned on the delay for depositing more than Rs. 5000 in Old currency notes that were banned. Citizens viewed the RBI Rule on December 19th as a U-Turn on the PM’s assurance. People also viewed the RBI Rule as opening various avenues for the bank employees to harass people besides increasing their own workload. The RBI Notification that came across as harsh for citizens due to its stipulations. Following the cash bank on high-value denominations citizens all over the country have been put through tremendous woes. The central government abruptly banned the denominations of Rs. 500 & Rs. 1000 currency notes on November 8th, 2016.