HOW YOU CAN DEPOSIT OLD NOTES EXCEEDING RS 5000/-

As we have informed you earlier that Ministry of Finance has placed Restriction on deposit of Old notes of Rs 500 and Rs 1000 in Bank account.Now RBI has released as circulars/direction to Banks regarding above subject and has amended his earlier notification dated 08/11/2016.

The summary of RBI directions is given as under

Analysis of New notification is given as under.

1.Now Old notes of Rs 500 and Rs 1000 notes can be deposited in to Bank up to Maximum Rs 5000/- without asking any questions by Banker.

2.Deposit of old notes exceeding Rs 5000/- can be made only once up to 30.12.2016. So if you have more than Rs 5000 old notes of Rs 500/1000 then you must go through instructions issued by RBI as under.

3.To deposit amount exceeding Rs 5000,Question shall be asked to you in presence of at least two officials of the bank that why you have not deposited the amount earlier ,Your amount will be deposited only if your explanation is satisfactory to Bank officials.

4.The explanation shall be taken in writing by Bank officials and kept on record to to facilitate an audit trail at a later stage .

5. If amount deposited in account is less than Rs 5000 then total of all the entries of deposit less than taken together on cumulative basis should be made an procedure as above should be adopted if amount in aggregate is exceeding Rs 5000.Suppose you have deposited 4000/-today and then go to deposit Rs 2000 again then you have follow the procedure above and have to give explanation to Bank officials. 

6. Full value of Old notes exceeding Rs 5000 shall be credited after following procedure as above without any limit.

7.However for Non-KYC accounts maximum amount to be credited must be restricted to Rs 50000/- even after completion of procedure.

8.Old notes without any limit can be deposited in to bank for tax deposit under new Pradhan Mantri Garib Kalyan Yojana, 2016

9.Old notes without any limit can be deposited in to bank for deposit under new Pradhan Mantri Garib Kalyan Deposit scheme, 2016

10.Third Party deposit is allowed only if you have proper authorisation from third party and Proof of Identity with you.

So on The basis of above notification/rules by RBI ,Tentative Process you should follow is given below.
Read Press release on above subject By Ministry of Finance 

Process you should adopt to deposit Old Notes exceeding Rs 5000/-

1.If you have old Rs 500/1000 Notes exceeding Rs 5000/- then collect them from all sources like Locker/wife/Mandir at Home/office Drawer/box etc and keep it one place and count them all. 

2. Prepare a record of amount already deposited in your account.

3.Prepare a Justification for amount already deposited and amount yet to be deposited in to bank account.

4.Prepare a explanation /Justification for your late deposit of Old notes 

5.You explanation should have two part :First part what is source of old notes Second part is Why you have not deposited Earlier? 

6.Source of Notes:May be your Income,Cash in Hand as per books, Savings from Income,withdrawal from Bank etc

7.Delay in Deposit :You may take plea of Lang queues in Banks.Security of amount deposited.

8.If you have followed the above procedure then you will not face any problem in depositing the Old notes exceeding Rs 5000/-

9.Keep in Mind that this facility is available only once till 30.12.2016.

Read Ministry of Finance notification here

RBI circulars reproduced as Under.

RBI/2016-17/189

DCM (Plg) No. 1859/10.27.00/2016-17

December 19, 2016

The Chairman / Managing Director/ Chief Executive Officer,

Public Sector Banks/ Private Sector Banks / Foreign Banks/ Regional Rural

Banks / Urban Cooperative Banks/ State Cooperative Banks

Dear Sir,

Withdrawal of Legal Tender Character of existing ₹ 500/- and ₹ 1000/- Bank Notes (Specified Bank Notes) - Deposit of Specified Bank Notes (SBNs) into bank accounts

Please refer to Circular DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 on the captioned subject. On a review of the provisions ii, iii and iv at C of Para 3 dealing with credit of the value of SBNs into bank accounts it has been decided to place certain restrictions on deposits of SBNs into bank accounts while encouraging the deposits of the same under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016 as indicated below:

Tenders of SBNs in excess of ₹ 5000 into a bank account will be received for credit only once during the remaining period till December 30, 2016. The credit in such cases shall be afforded only after questioning tenderer, on record, in the presence of at least two officials of the bank, as to why this could not be deposited earlier and receiving a satisfactory explanation. The explanation should be kept on record to facilitate an audit trail at a later stage. An appropriate flag also should be raised in CBS to that effect so that no more tenders are allowed.

Tenders of SBNs up to ₹ 5000 in value received across the counter will allowed to be credited to bank accounts in the normal course until December 30, 2016. Even when tenders smaller than ₹ 5000 are made in an account and such tenders taken together on cumulative basis exceed ₹ 5000 they may be subject to the procedure to be followed in case of tenders above ₹ 5000, with no more tenders being allowed thereafter until December 30, 2016.

It may also be ensured that full value of tenders of SBNs in excess of ₹ 5000 shall be credited to only KYC compliant accounts and if the accounts are not KYC compliant credits may be restricted up to ₹ 50,000 subject to the conditions governing the conduct of such accounts.

The above restrictions shall not apply to tenders of SBNs for the purpose of deposits under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.

The equivalent value of specified bank notes tendered may be credited to an account maintained by the tenderer at any bank in accordance with standard banking procedure and on production of valid proof of Identity.

The equivalent value of specified bank notes tendered may be credited to a third party account, provided specific authorisation therefor accorded by the third party is presented to the bank, following standard banking procedure and on production of valid proof of identity of the person actually tendering, as indicated in Annex-5 of our circular cited above.

2. Please acknowledge receipt.

Yours faithfully

(P Vijaya Kumar)

Chief General Manager