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RBI's new notification is ridiculous, says bank association president

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ANI New Delhi [India]
Last Updated : Dec 21 2016 | 5:57 PM IST

The president of All India Bank Employees Association, Vishwas Utagi, on Wednesday dubbed the Reserve Bank of India's (RBI) new notification of not depositing an amount beyond Rs. 5000 as ridiculous, adding that the government is forcing bank officials to become investigating or income tax officers.

"I think this is the 59th such notification or instruction from the Reserve Bank of India to the banking system, which is ridiculous. Prime Minister had said you can deposit till December 30, and now very ridiculously a proposal from RBI says you cannot deposit beyond Rs. 5000, and that too with two witnesses from the bank officials," Utagi told ANI.

The RBI had, earlier in the day, withdrawn its rule issued on Monday that restricted people from depositing over Rs. 5000 in old bank notes more than once till December 30. The Central Bank gave relaxation to those who hold 'Know Your Customer' (KYC) compliant accounts.

"We are the bank officers, we cannot verify from where the money has come. We can only accept and reject the deposits. There is nothing mentioned in the note, either black or white, that whether it is tax evaded or not. The bank cashier can verify only one thing whether it is a fake or a genuine note," he added.

The Reserve Bank of India (RBI) on Wednesday partially reversed the rule that restricted people from depositing over Rs. 5000 in old bank notes more than once till December 30.

The relaxation will, however, apply to "fully KYC compliant accounts" where KYC pertains to customer information details.

Earlier on Monday, the RBI had announced that deposits in old notes will be limited to Rs 5000, and those exceeding that sum will come under scrutiny.

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First Published: Dec 21 2016 | 5:25 PM IST

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