Deadline for depositing your old Rs 500, Rs 1,000 notes ends today

Breaking News -The deadline to deposit old Rs 500 and Rs 1,000 notes in banks ends on Friday. From next week onward, those still holding the scrapped currency can deposit it only with the Reserve Bank of India till March 31, 2017.

After March 31, holding demonetised notes would be illegal and could invite hefty fines, according to an ordinance passed by the Union Cabinet on Wednesday.

Prime Minister Narendra Modi is expected to address the nation on Saturday after his self-imposed deadline of 50-days for the situation to return to normal ends.

While some people are hoping for an extension in the deadline, the government maintained it had no plans to do so.

Modi had on November 8 announced that Rs 500 and Rs 1,000 rupee notes would no longer be legal tender.(Read More)

RBI retracts - multiple deposits of demonetised notes allowed till Dec 30

Breaking News - A day after the Reserve Bank withdrew the notification that barred people from depositing old notes in bank accounts more than once, the central bank on Thursday clarified that people are free to make more than one deposit till December 30.

The old Rs 500 and Rs 1,000 notes can be deposited at bank branches or in cash deposit machines more than once till December 30, Reserve Bank of India (RBI) said in the updated Frequently asked questions (FAQ).

The customers should use separate pay-in-slips for making deposits in the mixed bunch of demonetised and legal tender notes, it said.

Anybody depositing more than Rs 50,000 in cash in their bank account needs to submit a copy of the PAN card in case the bank account is not seeded with the information.

The clarification on the part of the RBI comes a day after it took a U-turn on its notification of December 19 after widespread protests from the public.

Finance Minister Arun Jaitley had clarified the same evening on December 19 that one-time deposit would not attract any scrutiny by bankers. However, on Tuesday, he had insisted that only a one-time deposit would be allowed till December 30. On Wednesday, the RBI withdrew its norms on KYC deposits, but left it unclear whether multiple deposits would be allowed.(Read More)

Now, banks asking for source of funds deposited in old currency

Cautious bank staffers also checking on last deposit amount, showering a volley of questions to save their own skin

A day after the Union government announced that bank customers would now need to provide satisfactory explanation while depositing more than Rs 5,000 in old currency notes, every bank has come out with its own way to evaluate its customers.

At one of the Central Bank branches in the national capital, the bank manager appeared reluctant to accept old currency in the denomination of Rs 500 and Rs 1,000. “This new scheme is to fix the bank officials. They will ask me why I took money in old currency,” said the visibly upset manager, who did not wish to be identified.

The manager was asking each customers to write an application detailing why she didn’t deposit the money before December 20. The bank has also designed a form asking the customers to fill details like name, account number, and since when she had held an account at the branch.(Read More)