Modi Takes Back Controversial Condition

People who were worried about the recent amendment in the demonetization scheme of restriction on the deposition of old notes can relax now. RBI today withdrew the restriction of the deposition which was announced on Monday.

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Now the deposition can be made as usual until 30th December as announced by Modi on November 8 and there is no restriction on the amount to deposit nor on the number of times to deposit. But this excuse is applicable only for the KYC compliant account holders.

As soon as RBI announced that amount above Rs 5000 can only be deposited once till 30th of December, people rushed to the banks with loads of banned notes. These two days were a nightmare for both the bankers and the depositors. Bankers were not accepting the depositions above 5000 as they were frightened that Income Tax officials could bug them for the explanation of such deposits. This situation created a ruckus which brought up criticism over the decision of RBI.

Considering the results of the Monday’s amendment, RBI took a U-Turn and withdrew the restriction giving hope to the depositors who were terrified with the shock.