24/11/2016
The Government on
Wednesday exempted post office, saving account from the ban on accepting
deposits of demonetised Rs 500 and Rs 1,000 notes in small schemes.
Government on Wednesday exempted Post Office saving account from
ban on accepting deposits of demonetised Rs 500 and Rs 1,000 notes in small
schemes. Earlier today, RBI had asked banks to not accept
the demonetised Rs 500 and Rs 1,000 notes for deposit in small saving schemes.
However, RBI had not provided a reason for the move. An official RBI
notification read that the subscribers of small savings schemes would not be allowed
to deposit demonetised currency of Rs 500 and Rs 1,000 notes with immediate
effect. It directed banks to not accept the old notes of Rs 500 and Rs 1,000.
“Government of India has decided that subscribers may not be allowed to deposit
demonetised currency in small savings schemes. Banks are, therefore, advised
not to accept the old Rs 500 and Rs 1,000 notes for deposits in small saving
schemes with immediate effect,” The finance ministry now, however
allowed the Post Offices savings account to accept the demonetised notes.
Public Provident Fund (PPF), Post Office Saving Schemes, National Savings
Certificates (NSC), Senior Citizen Savings Scheme (SCSS) Account and Kisan
Vikas Patra (KVP) fall under small savings scheme. Post Office Savings
Account are opened in Post Offices for less than Rs 20 and offer an interest of
4% per annum.
Government on 8th of
November had put a ban on Rs 500 and Rs 1,000 notes. The government had also
issued several other guidelines and had set new rules. The ATM withdrawal limit
was cut to Rs 2,500. The withdrawal limit from banks too was set to Rs 50,000
cash per week.