Rules and Regulations of Demonetisation

 

On the 8th of November 2016, the Prime Minister of India, Narendra Modi announced the demonetisation of Rs 500 and Rs 1000 notes in an effort to curb the escalation of black money that has plagued our country. The aftermath of this announcement was a massive number of people rushing to the banks and ATMs to exchange and withdraw money. Several are still muddled about the rules set by the RBI about depositing and exchanging money in banks. In this article we will guide you through these rules and regulations, so that there are no further misconceptions while withdrawing or exchanging money.

How much can be deposited at once?

This depends on your KYC compliance with the bank. If the KYC documents are complete then there’s no limit, but if the KYC documents are incomplete then a maximum amount of Rs 50,000 can be deposited.

Documents required for depositing

Depositing money in the banks can only be done if you display your Government issued Adhar card or Passport or PAN card to the authorized personnel. You won’t be allowed to deposit any money if you fail to present an ID proof. Also, you must exchange your old Rs 500 and Rs 1000 notes on or before 30th December 2016 after which the notes will be deemed worthless pieces of paper and no financial institution will exchange it except for specific offices of RBI.

No bank account?

No worries if you don’t have a bank account, you can deposit in any third person’s bank account, provided you submit to the bank a written and signed letter from the third person that you’re depositing the money in his account. The letter is a proof of consent from the third person and should also contain details like the amount of money being deposited, also, you must produce a valid ID proof like Passport, PAN card or Adhar card.

In case you’re unable to deposit the Rs 500 and Rs 1000 rupee notes before 30th December 2016, then an opportunity will be given to you to deposit the demonetised currency in specified RBI offices.

This move of demonetisation has drawn mixed responses from the masses. Some of them are happy as it will retrieve black money and some are furious due to the inconvenience they are facing. We feel that the move is refreshing and it was about time that someone took a stand on the ‘Black Money’ issue.

Source: http://economictimes.indiatimes.com/wealth/personal-finance-news/here-are-the-rules-and-procedure-for-depositing-cash-into-banks/articleshow/55331153.cms

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