RBI/2016-17/189
DCM (Plg) No. 1859/10.27.00/2016-17
December
19, 2016
The Chairman / Managing
Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks/ Regional Rural
Banks / Urban Cooperative Banks/ State Cooperative Banks
Dear Sir,
Withdrawal of Legal Tender
Character of existing ? 500/- and ? 1000/- Bank Notes (Specified Bank
Notes) - Deposit of Specified Bank Notes (SBNs) into bank accounts
Please refer to Circular
DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 on the
captioned subject. On a review of the provisions ii, iii and iv at C of
Para 3 dealing with credit of the value of SBNs into bank accounts it has
been decided to place certain restrictions on deposits of SBNs into bank accounts
while encouraging the deposits of the same under the Taxation and
Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016 as
indicated below:
i.
Tenders
of SBNs in excess of ? 5000 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.
ii.
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 ? 5000,
with no more tenders being allowed thereafter until December 30, 2016.
iii.
It may
also be ensured that full value of tenders of SBNs in excess of ? 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.
iv.
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.
v.
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.
vi.
The
equivalent value of specified bank notes tendered may be credited to a
third party account, provided specific authorisation therefor accorded by
the third party is presented to the bank, following standard banking
procedure and on production of valid proof of identity of the person
actually tendering, as indicated in Annex-5 of our circular cited
above.
2. Please acknowledge receipt.
Yours faithfully
(P Vijaya Kumar)
Chief General Manager
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