The government of India, on Tuesday, decided to demonetize 500 and 1000 rupees notes in an effort to retrieve black money, since all the notes constituting black money in India are high value denominations like Rs. 500 or Rs. 1000. Ever since this news was announced, people all over India have been rushing to ATMs and banks to withdraw and replace 500 and 1000 rupees notes. But what you might not know, are the rules to deposit and exchange money in banks. In this article we shall discuss that in detail. The rules to deposit money in Indian banks are as follows:
- How much can be deposited in one go? The amount that can be deposited in one – go in your bank account, depends on your KYC compliance with the bank. If your KYC documents are complete, there is no limit to the quantity and value of older notes that you can deposit into your bank account. However, if your KYC documents are incomplete, a maximum of Rs. 50,000 can be deposited.
- What documents are required for depositing? If you wish to deposit money into your bank account then you must produce your government of India – issued ID proof like PAN card or Adhar card or Passport without fail. Else you will not be allowed to deposit money by the banks. You must also exchange your invalid 500 and 1000 rupees notes in the banks, on or before December 30th, 2016, failing which they will become invalid and you might as well use them as toilet papers or for putting bhel puri in (J).
- What if I don’t have a bank account? If you do not have a bank account, you can also deposit your money in any third person’s bank account! However, for this to be feasible, you must have a written letter, with that person’s sign on the letter, giving you permission to deposit money in his or her bank account. The letter must contain his or her consent to your action as well as details about how much money that person is authorizing you to deposit in his or her bank account. You must also produce your government of India – issued ID proof such as PAN card, Adhar card or Passport for depositing money in a third person’s account. In case you are unable to deposit the demonetized currency notes into your bank/s by December 30th,2016, an opportunity will be given to you to do so at specified offices of the Reserve Bank of India (RBI). You will be required to furnish the necessary documents, as specified by the RBI. Read more on Black Money
This move to demonetize 500 and 1000 rupees currency notes has drawn mixed responses from people. Some say that this move has caused them lot of inconvenience in the short term. Some others appreciate this move taken by the Modi government, saying that it will retrieve black money in the long term. We go by the people who have appreciated PM, Narendra Modi’s move. A lot of black cash is present in India with mainly, politicians and realtors. All the notes in that money are high – value denominations like Rs. 500 or Rs. 1000. Thereby, by demonetizing them, people who have stashed black money in India and abroad will be forced to deposit that in their accounts to get access to legal money. With the banks and income tax officials keeping track of high – value transactions and collecting details such as ID proofs and ID numbers from depositors. The government of India can finally ‘crack the whip’ on fraudsters and tax – evaders. They will be forced to pay 45% tax on their black money and this move is expected to generate a lot of income for the Indian government. This is truly a brilliant move and a ‘master stroke’ by PM, Narendra Modi and the Indian government. We are proud of our PM, Narendra Modi for the wit and courage he has shown in tackling corruption and black money issues in India. Read more on Startup News