Indian Banks Association
No.RB/CIR/OTC-IDS/1404
November 11, 2016
The Chief Executives of All Member Banks
Dear Sir/Madam,
Acceptance of Cash over the Counter – Income Declaration Scheme 2016
The Reserve Bank of India (RBI) has issued a Cir.DBR.No.Leg.BC 8/09.07.005/2016-17 dated 8th September 2016 where in RBI has advised that banks must invariably accept cash, irrespective of amount, over the counters from all declarants who desire to deposit cash at the counters including deposits under the Income Declaration Scheme 2016 through ITNS Challan – 286.
In this connection, RBI has brought to the notice of IBA that Government has expressed concern that banks are not following direction issued by RBI in relations to deposit of cash and are insisting that depositors should disclose the source of cash deposit. This is against the decided Policy of the Government to keep the declarations made under IDS 2016 confidential.
All the member banks are requested to sensitize their branches to ensure that while identification of customers and walk-in-customers is necessary as per KYC instructions contained in the Master Direction–KYC Circular DBR.AML.BC.No.81/14.01,001/2015-16 dated 25th February 2016, banks should not seek sources of funds for cash deposits under IDS-2016.
Yours faithfully,
K Unnikrishnan
Chief Executive (Offg)
