The Reserve Bank of India (RBI) on Wednesday partially reversed the rule that restricted people from depositing over Rs. 5000 in old banknotes 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 the sum will come under scrutiny.
"Tenders of specified bank notes (SBN) in excess of Rs. 5,000 into a bank account will be received for credit only once during the remaining period till December 30, 2016," it further added.
The announcement comes after a lot of criticism of the government for adversely affecting people who had waited for the queues at banks to reduce.
"The credit in such cases shall be afforded only after questioning tenderer, on record, in the presence of at least two officials of the bank, as to why this could not be deposited earlier and receiving a satisfactory explanation," the statement added.