The Ministry of Finance on Monday announced that old currency note deposits above Rs 5,000 would be restricted to once per account until December 30, ANI reported. Minister of State for Finance Arjun Ram Meghwal also announced that the cap on withdrawal will be lifted on December 30, The Economic Times reported. Currently, the withdrawal limit per current account is Rs 50,000 per week.
The Economic Times quoted an unidentified official, who said, “Large deposits cannot be made multiple times in bank accounts. People can deposit up to Rs 5,000 on which there is no restriction.” Deposits of Rs 5,000 and above in new notes are allowed if they are know-your-customer compliant, The Times of India reported. The Reserve Bank of India is expected to announce several demonetisation-related rules on Monday evening.
The statement said there will be no curbs imposed on amounts deposited towards the Pradhan Mantri Garib Kalyan Yojana, which is an illegal money disclosure scheme.
The Centre’s move to discontinue the high-value notes has faced sharp criticism from economists and Opposition parties. Economic productivity has also been affected by the move, and disruptions by Opposition parties in both Houses of Parliament led to a complete washout of the Winter Session.