RBI has now stated that no questions will be asked for deposits above Rs. 5,000 for KYC accounts

Reserve Bank of India (RBI) changed its decision to question deposits being made above Rs. 5,000. The RBI has now stated that no questions will be asked for deposits above Rs. 5,000 for fully compliant KYC or Know Your Customer accounts. The revised announcement comes barely  two days after RBI had said that all such deposits will invite questions.

The government, on Monday, said that only one deposit of more than Rs. 5,000 would be allowed till December 30 and people depositing it would be questioned.



While the announcement was being made, it was stated that the government was presuming that most people would have already deposited their old notes since the demonetisation announcement was made – about five weeks earlier.

However, many had complained that as per the earlier advise from the government, people were not rushing for deposits as they were told they had till December 30 to do so.

Later, Finance Minister, Arun Jaitley stated that depositing the banned currency of any amount, in one go – would not be questioned. However, repeated deposits may raise questions.