Deposit your old notes in one go, repeated deposits will raise queries says Arun Jaitley

 No questions will be asked if the old currency is deposited in one go, but repeated deposits will raise queries: Arun Jaitley
    Please go and deposit old currency you have because there is no scope now for using any old currency as all exemptions are over: Jaitley


Union Finance Minister Arun Jaitley on Monday advised people to deposit their old 500 and 1000 rupee notes in one go and avoid repeated visits to the bank. This comes after a slew of measures by the government to tighten the rules for depositing old 500 and 1000 rupee notes

"No questions will be asked if the old currency is deposited in one go, but repeated deposits will raise queries," Arun Jaitley said.

"But if they are going to banks everyday to deposit some currency, same person, that gives rise to suspicion about from where is he acquiring this currency from. In that event a person may have something to worry about. Therefore everyone is advised whatever old currency you have please go and deposit it now," he said.

With nearly Rs 13 lakh crore out of the Rs 15.4 lakh crore worth of 500 and 1000 rupee junked already deposited in banks, the government has changed rules to mandate that individuals can deposit over Rs 5,000 in old currency bills only once until December 30 and that too after explaining why it had not been done so far.

Explaining the rationale behind the move, Jaitley said all exemptions to certain sectors and utilities, which had been allowed to accept the banned currency post demonetisation, ended last week and all those in possession of the old notes are supposed to deposit them with banks.

"Please go and deposit old currency you have because there is no scope now for using any old currency as all exemptions are over," Jaitley said.

"Between today and December 30, anyone who has old currency notes is not allowed to trade in them but only deposit them in banks," he said.

He said that RBI restrictions on deposit of old notes were notified today to discourage people going everyday to banks.



The government on Monday tightened rules for depositing junked 500 and 1,000 rupee notes, and said individuals can deposit over Rs 5,000 in old currency bills only once until December 30 and that too after explaining why it had not been done so far.


After banning old 500 and 1,000 rupee notes on November 8, the government had allowed all of the cash holdings with any person to be deposited in bank accounts till December 30. There was no limit on the quantity or value of the junked notes that could be deposited.


However, the government has now issued a gazette notification putting restrictions on deposits henceforth.

"The deposits of old notes of Rs 500 and Rs 1,000 denominations have been reviewed by the government from time to time. Already more than five weeks have elapsed since the time of the announcement of the cancellation of the legal tender character of these notes. It is expected that, by now, most of the people would have deposited such old notes in their possession," an official statement said.

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