RBI withdraws provision allowing questioning of deposits above Rs 5,000 for KYC-compliant accounts
On Monday, the central bank had announced that old currency note deposits above Rs 5,000 would be restricted to once per account until December 30.
The Reserve Bank of India on Wednesday withdrew a provision allowing banks to question deposits above Rs 5,000 in Know-Your-Customer-compliant accounts according to reports. On Monday, the central bank had announced that old currency note deposits above Rs 5,000 would be restricted to once per account until December 30.
Minister of State for Finance Arjun Ram Meghwal had also announced that the cap on withdrawal will be lifted on December 30. The withdrawal restriction statement had 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.