Worry, confusion reign after RBI cash deposit circular

KOLKATA: For those who waited for the queues at banks to thin down before depositing their scrapped currency ahead of the central deadline, the RBI's Monday created loads of confusion and worries among the common man, some of them unfounded.

In its latest circular, the central bank said old currency, amounting to over Rs 5,000, can be deposited in banks only once till December 30, 2016. If the amount is less than Rs 5,000, the client will not be questioned. But for a higher amount, the

customer

will be asked, in the presence of at least two bank officials, why shehe could not deposit it earlier. The statements will be recorded for audit and only after officials are satisfied with the explanation will they accept the amounts.

Schoolteacher Sonia

Gupta

can't stop blaming herself for postponing the deposition of old notes. “We are a working couple.As the deadline is December 30 and I have barely Rs11,000 in cash, I kept postponing visiting the bank, hoping for the queues to decrease. Now, does this rule I'll have to face questioning?“ she said. But Gupta doesn't need to bother, as she and her husband are salaried, whose salary is credited every month post tax. They, however, will not save the time they hoped they would.

A person who rushed to a private bank in

Lake Town

this morning to deposit Rs 25,000 in old currency, said, “I was asked to write an application on the delay. I wrote that this money was kept for exigency and I was waiting for the queues to get shorter. I was told to add that my only income source is my salary.“ Another person had a more “accommodating“ teller. This private bank officer in

Lenin Sarani

told the depositor with Rs 30,000 in old currency, “I am recording that the cash was deposited at 11:59 am; the circular will be applicable after midday.“ The time then was 2:20 pm.

A leather exporter,

Dipanjan Roy

(name changed on request), still has a lot of old currency from the pre-demonetisation time, when he dealt mostly in cash. “I always thought December 30 was far away. My family had planned a vacation. I thought I would return and deposit the cash after that. Today's circular was forwarded to me by my chartered accountant. It effectively means I have to account for every note above Rs 5,000. It's an arduous task and I don't know if I have time for all that,“ he rued.

For a city hotelier, who has properties in west Sikkim, a visit to the bank in the hills usually takes an hour-long drive. “We usually deposit cash in the bank once a fortnight.Many customers, who paid later for reservations made before November 8, gave us old currency, pleading they weren't prepared for such a sudden announcement. We accepted them, thinking we would deposit them in bank. Now, we will have to give out the customer details along with the cash.Customer confidentiality, key to our business, will be impacted.“