RBI’s latest stipulation on depositing more than R5,000 angers people

Monday’s change also stipulated that even for deposits below Rs5,000, made at once or cumulatively till December 30, customers could be questioned should the banks feel the need...

People criticised the new directive issued by the Reserve Bank of India (RBI), just 10 days before the December 30 deadline to deposit demonetised currency ends. The central bank on Monday had announced that deposits above Rs 5,000 in old currencies can be made only once till December 30.

People queue outside an ATM at Antop Hill on Tuesday. (Kunal Patil/HT)

After a series of banking restrictions, after the government demonetised Rs500 and Rs1,000 notes, the latest decision left people confused and angry.

“I have more than Rs5,000 in my hand. I have an ailing mother at home so I need to keep cash in hand for emergency situations. Now, at the cusp of the deadline, they are saying there is a cap on deposits too,” said Kishor Lakhani, a Malad businessman, adding, “If he (Prime Minister) had to do this, then why did he announce the countrymen (on November 8) that you can deposit till December 30?”

Deposits above Rs5,000 will be accepted only after bank officials are given an explanation why the deposits were not made earlier. The accounts must also be compliant with customer information details, called KYC (Know Your Customer), otherwise deposits can be restricted to Rs 50,000, the RBI said.

“What about the people who decided to deposit later in the month to avoid long queues? They (government) want common people to suffer and wait in lines every day,” Sagar Rajput, an Andheri job goer, said while waiting outside a bank.

Monday’s change also stipulated that even for deposits below Rs 5,000, made at once or cumulatively till December 30, customers could be questioned should the banks feel the need.

Pinkal Valia, a teacher in Bandra, said, “I don’t know how people are still depositing? I did the second week after the [demonetisation] decision. Let them keep changing decisions, I am not going to get affected by it anyway. But this [restrictions on deposits] was uncalled for.”

The banned notes can be deposited in banks till December 30, and thereafter at select RBI counters till March 31.