In the face of a huge public outcry, the Reserve Bank of
India has done away the restrictions placed on deposit of over Rs 5,000
in the scrapped Rs 500 and Rs 1000 notes, stating the restrictions are
not applicable if the deposits are made into fully compliant
Know-Your-Customer (KYC) accounts.
The RBI on
December 19 had said deposits of over Rs 5,000 in old notes could be
made only once till December 30, 2016 that too after being questioned by two
bank officials as to why the notes were not deposited so far and the
source of the notes.
Opposition parties were strident in their criticism of the RBI notification.
The Reserve Bank of India’s 60th Notification, on day number 43 of Demonetisation, has partially rolled back an earlier notification that caused anger because it sought to restrict deposits of over 5000 rupees, in the process creating more confusion.
The earlier notification, issued on December 19, allowed the deposit of over 5000 rupees in bank accounts by citizens only once, that too after a “satisfactory explanation” could be provided to three bank officials.
Wednesday’s rollback makes an exception for fully KYC compliant customers. But it means that customers without fully compliant KYC norms will still have to give a “satisfactory explanation”.
KYC stands for ‘Know Your Customer’, a process through which banks obtain information about the identity of customers with accounts so that they cannot be misused. A proof of identity and a proof of address - Aadhar, license, Voters ID card, Passport or nrega card – have to be supplied for account verification.
Wednesday’s notification means that customers with fully compliant KYC accounts will be exempt from the order that states that deposits of over Rs 5000 could only be made once till December 30 and that people making such deposits will have to provide a “satisfactory explanation” to three bank officials as to why they didn’t deposit these amounts earlier.
The Reserve Bank of India’s 60th Notification, on day number 43 of Demonetisation, has partially rolled back an earlier notification that caused anger because it sought to restrict deposits of over 5000 rupees, in the process creating more confusion.
The earlier notification, issued on December 19, allowed the deposit of over 5000 rupees in bank accounts by citizens only once, that too after a “satisfactory explanation” could be provided to three bank officials.
Wednesday’s rollback makes an exception for fully KYC compliant customers. But it means that customers without fully compliant KYC norms will still have to give a “satisfactory explanation”.
KYC stands for ‘Know Your Customer’, a process through which banks obtain information about the identity of customers with accounts so that they cannot be misused. A proof of identity and a proof of address - Aadhar, license, Voters ID card, Passport or nrega card – have to be supplied for account verification.
Wednesday’s notification means that customers with fully compliant KYC accounts will be exempt from the order that states that deposits of over Rs 5000 could only be made once till December 30 and that people making such deposits will have to provide a “satisfactory explanation” to three bank officials as to why they didn’t deposit these amounts earlier.
No comments:
Post a Comment