note demonetisation

RBI directs banks to submit reports on collection of demonetised notes by Friday night

Income Tax Department officials said they were probing deposits amounting to at least Rs 4 lakh crore into 1.14 lakh bank accounts.

The Reserve Bank of India on Friday directed banks across the country to submit reports with details about the collection of specified bank notes – Rs 500 and Rs 1,000 – by the end of the business day on December 30. The RBI also announced the closure of the deposit and exchange of demonetised notes on December 30.

A statement issued by the central bank said, “All bank branches (other than those of District Central Co-operative Banks) who have accumulated specified bank notes at the close of business on December 30, 2016, are required to deposit the same in any Issue Office of the Reserve Bank or a currency chest on December 31, 2016 itself.” The statement added that the notes cannot be a part of the bank’s balances on or after December 31, 2016.

The apex bank will enable reporting of transactions in Integrated Computerised Currency Operations and Management System after 9 pm to accommodate receipt of all deposits.

Income Tax department officials said at least Rs 4 lakh crore had been deposited into 1.14 lakh bank accounts. These transactions will soon be investigated for violations. “People thought the government will not do anything and kept depositing money. We have been analysing data on a weekly basis and we are going to act against those who have unaccounted money. Obviously, we want everyone to come forward and themselves pay taxes,” The Economic Times quoted an official as saying.

The Income Tax Department is also investigating the 1.77 lakh borrowers’ repayment of loans amounting to Rs 25 lakh in demonetised currency between November 10 and 30.

On November 8, the government had demonetised Rs 500 and Rs 1,000 notes, which made up 86% of India’s currency, saying the move would help smoke out those hoarding black money. It has since said that the decision will also push India towards becoming a cashless economy. The move has been widely criticised by the Opposition and economists, and citizens have faced a massive cash crunch.

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This article was produced by the Scroll marketing team on behalf of Mutual Funds Sahi Hai and not by the Scroll editorial team.