Post repeated guidelines being issued on an everyday basis, the latest development in the process of Demonetisation is that amount over and above Rs.5000 cannot be deposited more than once until 30th December.
In a bid to cut short the serpentine queues outside the banks, government decided to cease the deposits above Rs.5000 from now until Decemeber30. The RBI also declared and announced a similar scheme.
On being asked about the reason behind the move, Mr Jaitley said all exemptions to certain sectors and utilities, which had been allowed to accept the banned currency post demonetisation, ended last week and all those in possession of the old notes are supposed to deposit them with banks. He added, “Anyone who has old currency notes is not allowed to trade in them. He can only go and deposit them with banks.”
He reaffirmed, “If they go and deposit with the bank any amount of currency, no questions are going to be asked to them and therefore the 5000 rupee limit does not apply to them – but if they go and deposit it once.”
“But if they are going to go everyday and deposit some currency (small amounts), same person, that gives rise to suspicion that where is he acquiring this currency from. In that event a person may have something to worry about. Therefore everyone is advised whatever old currency you have please go and deposit it now,” he said.
And since there is no scope now for earning any old currency because all exemptions have been waived, it makes sense to go deposit all the holding in one go, Mr Jaitley said.
“This is the objective of the order passed today.”
“The deposits of old notes of Rs. 500 and Rs. 1,000 denominations have been reviewed by the government from time to time. Already more than five weeks have elapsed since the time of the announcement of the cancellation of the legal tender character of these notes. It is expected that, by now, most of the people would have deposited such old notes in their possession,” an official statement said.
“The banks have been advised to conduct due diligence regarding the reasons for not depositing these notes earlier,” the statement said.
Nontheless, the defunct currency up to any amount can be deposited under the new black money amnesty scheme, Pradhan Mantri Garib Kalyan Yojana or PMGKY.
