Union Government and Reserve Bank of India took a u-turn over restrictions imposed on deposits of old notes more than Rs 5,000.
On Monday, RBI issued an order restricting deposit limit to Rs 5,000. People were only allowed to deposit more than Rs 5,000 in KYC-compliant accounts only once until December 30th, 2016. That too, They should convince at least two bank employees with documentation with the reasons for not depositing the old notes so far.
The sudden rule change invited the wrath of citizens and political parties. Critics questioned how can the assurance given by PM on November 8th (deposits of old notes totaling any amount will be allowed till Dec 30th) be ignored.
As a result, RBI took an u-turn on Wednesday. A fresh order has been issued permitting deposits above Rs 5000 in old Rs 500 and Rs 1000 denominations.
On Monday, RBI issued an order restricting deposit limit to Rs 5,000. People were only allowed to deposit more than Rs 5,000 in KYC-compliant accounts only once until December 30th, 2016. That too, They should convince at least two bank employees with documentation with the reasons for not depositing the old notes so far.
The sudden rule change invited the wrath of citizens and political parties. Critics questioned how can the assurance given by PM on November 8th (deposits of old notes totaling any amount will be allowed till Dec 30th) be ignored.
As a result, RBI took an u-turn on Wednesday. A fresh order has been issued permitting deposits above Rs 5000 in old Rs 500 and Rs 1000 denominations.