Old notes can be deposited in an account only once now: No direct credit of amount in excess of Rs. 5000 deposited in account: Old demonetised notes can be used to pay tax and deposit under Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016; deposit of specified bank notes collected between 10th day of November to 14th day of November, 2016, by the District Co-operative Central Bank shall be subject to instructions of the Reserve Bank of India.

Download Official Copy of the Notification

MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 17th December, 2016

S.O. 4086(E).-In exercise of the powers conferred by sub-section (2) of section 26 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016, namely:‑

In the said notification, in paragraph 2,‑

(a) in clause (iii), the following provisos shall be inserted, namely:‑

“Provided that the deposit upto the amount of Rs. 5000/- shall be made directly into such account and the rest of the amount, if any, shall be subject to such conditions as the Reserve Bank of India may specify:

Provided further that the deposit of an amount exceeding Rs. 5000 shall be made only once per account until 30th December, 2016;”;

(b) after clause (iii), the following clause shall be inserted, namely:-

“(iiia) there shall not be any limit on the quantity or value of the specified bank notes that are tendered for payment and deposit made under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016;”;

(c) after clause (ix), the following clause shall be inserted, namely:‑

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“(x) deposit of specified bank notes collected between 10th day of November to 14th day of November, 2016, by the District Co-operative Central Bank shall be subject to instructions of the Reserve Bank of India and for the specified bank notes deposited by individual customers or by the Primary Agricultural Credit Societies complete audit check of the veracity of the Know Your Customer documents of the said individual or the members of the said Primary Agricultural Credit Societies shall be conducted by the National Bank for Agriculture and Rural Development:

Provided that the linked currency chest to District Co-operative Central Banks shall give the exchange value for verified specified bank notes only and subject to usual checks relating to identification of fake Indian currency notes.”.

[F. No. 10/03/2016-Cy.I]

Dr. SAURABH GARG, Jt. Secy.

Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 3407(E), dated the 8th November, 2016 and subsequently corrected vide notification number S.O. 3418(E), dated the 9th November, 2016 and amended vide S.O. 3446(E), dated the 13th November, 2016, S.O. 3449(E), dated the 14th November, 2016, S.O. 3479(E), dated the 17th November, 2016, S.O. 3488(E), dated the 18th November, 2016, S.O. 3543(E), dated the 24th November, 2016 and S.O. 3599(E), dated the 30th November, 2016.

Suggested Read

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Category : Fema / RBI (3276)
Type : Featured (4133) Notifications (15282) Notifications/Circulars (30314)
Tags : black money (686) Demonetization (464) PMGKY 2016 (60) RBI Notifications (1870)

19 responses to “Govt Restricts deposit of old Rs. 500 and 1000 notes in Bank Account”

  1. Brij Bhushan sarpal says:

    If you really want to win the match, you must change your strategy, accordingly the game plan of the other side team,

    We may face the difficulties for an act for the betterment of society

  2. mANZOOR aHMED BAKHSHI says:

    The notification has now been uploaded on RBI site.

  3. K L Gopalakrishnan says:

    Notification has not been updated in the official site of department of economic affair till now. Further RBI has to come up the procedure for deposits more than Rs.5000/- once in individuals account.

  4. Himanshu jadav says:

    Now we cannot rely on taxguru..??please dont share news which is not confirmed

  5. GHANSHYAM GUPTA says:

    why the person posting fake notification? This will create doubt in every such information which may be true or not.

  6. Surya Chhabria says:

    They will have to approach RBI and give the declaration and then get the amount exchanged till 31st March, 2017. The provision is there in the notification dated 08/11/2016

  7. CA Navin Jain says:

    It is issued by MOF, Dept of economic affairs, the site is yet to be updated.

  8. Amit Walia says:

    One is correct to deposit old currency in small tranches earlier, since who want to risk of carrying all of old currency to bank at one go

  9. Amit Walia says:

    RBI will except Old Currency till 31st March, 2017

  10. kamal gupta says:

    From this notification, it is clear now that govt was not ready for implementation of the demonitasation. If any person who deposited the old currency without any limit will be given chance of depoisted inspite of the due date of 30 dec 2016 but a person who did not depoisited the old currency with genuine reason will be in hardship despite the original due date. Any notification if required should come after due date.

  11. pardeep rana says:

    It is not there on the RBI web site, it is shameful for the web like tax guru, publishing the same . However It would have been done in real by the RBI, it would be good step, it will curb on the people exchanging/converting the currency illegally.

  12. pardeep rana says:

    There is no such notification on the web site official,it is shameful for the renowned web of Tax Guru.

    • admin says:

      Why it is shameful for us. for the negligence of website of governments in updating the information. We have now uploaded the official copy too

  13. Mahendra Kr Chowdhary says:

    The restriction of Rs.5,000/- appears to be Hoax, since no such notification at the official site of RBI till now on 19.12.2016 up to 11:10 AM.
    ONE CAN VERIFY AT RBI SITE IN NOTIFICATIONS

  14. Mahendra Kr. Chowdhary says:

    The restriction of Rs.5,000/- appears to be Hoax, since no such notification at the official site of RBI till now on 19.12.2016 up to 11:10 AM.
    ONE CAN VERIFY AT RBI SITE IN NOTIFICATIONS

  15. Sudhir Chandra Goyal says:

    Notification you are discussing is not available on rbi website hence fake.

  16. MARS says:

    This Notification should have been brought in very early., this notification will kill the game of Exchange of New notes with Old notes in grey market., definetly therewill be hardship to Genuine persons., but what else can be done looking into the huge Grey Market was done to convert old Notes(Black Money) with the New Notes.,

  17. Sajinder Grover says:

    Really surprised with day to day notifications. Can someone clarify what about the persons who are on visit to meet their children in foreign country are having the indian currency with them in denominations of 500 & 1000. They expect to go back by February 2017, how they are going to deposit that amount.

  18. SUNIL KUMAR GUPTA says:

    Good step, because There is no restriction how much old currency you can deposited in bank after 8th of Nov, but I have deposited 2nd time Rs 50000/- and 3rd time Rs 25000/- , the question raised from where I have received the old currency and why I have received old currency after 8/11/2016

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