RBI U-turn: KYC customers can deposit any amount, any number of times

RBI withdrew rules that required bank customers to make deposits of above Rs 5,000 in old notes

Facing intense criticism, the Reserve Bank of India (RBI) on Wednesday withdrew rules that required bank customers to make deposits of above Rs 5,000 in old currency notes at one go and only after satisfying officials with reasons for not doing so earlier.

In the modified circular on its website on Wednesday afternoon, the central bank said two sub-paragraphs of the original circular “will not apply to fully KYC compliant accounts.” This means there would be no restriction on cash deposits — neither on the amount, nor on the number of times money could be deposited. The latest notification is