The government has announced new restrictions in deposits – only Rs. 5000 of old Rs. 500-1000 notes can be credited in a bank account until the demonetization deadline December 30.
“Keeping this in view and to reduce the queues in the banks, it has now been decided that amounts exceeding Rs.5000 in old notes can be deposited only once between now and 30th December, 2016,” states government’s press release.
However more than Rs. 5000 can be deposited in banks provided the accounts are Know Your Customer (KYC) compliant. The new restriction of depositing only Rs. 5000 once in a bank account is said to bring more transparency as account holders would be forced to put forth a ‘satisfactory explanation’ of the currency they possess.
As the RBI notification states, more than Rs. 5000 in old demonetized notes can be credited to bank accounts “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 restrictions are not applied for those who opts for declaring unaccounted currency under the new government initiative Pradhan Mantri Garib Kalyan Yojna 2016 which levies 50% tax and penalty.
Since the demonetization initiative have come into effect after November 8 announcement, Income Tax department and other government investigative bodies have unearthed several tax evaders and black money holders with hefty cash, also in newly printed denominations.
The deadline for depositing old denomination of Rs. 500-1000 notes in bank accounts remains 11 days from this day.