Super Summary of RBI circulars of demonetization

Provision of Exchange Facility of SBN:

08.11.2016: RBI/2016-2017/112   

The SBN of aggregate value of ₹4,000/- or below may be exchanged for any denomination of bank notes having legal tender character, with a requisition slip in the format specified by the Reserve Bank and proof of identity

Reporting Mechanism

Each bank branch exchanging Bank Notes in the denominations of ₹500/- and ₹1,000/- shall report at the close of business on each day starting from November 10, 2016 by email or Fax to their Controlling Office a statement as per Annex-6

13.11.2016: RBI/2016-2017/128

Revision in limits: The limit for exchange of Specified Bank Notes, over the counter has been increased from the existing ₹4000/- to ₹4500

17.112016: RBI/2016-2017/139

The limit of exchange of SBNs in cash, across the counter of the banks shall be ₹2000 with effect from November 18, 2016. This facility will be available only once per person

24.11.2016: RBI/2016-2017/155

1. Discontinuation of over the Counters Exchange of SBN

2. On a review it has since been decided that no over the counter exchange (in cash) of SBNs will be permitted after midnight of November 24, 2016

25.11.2016: RBI/2016-2017/157

Exchange facility to foreign citizens (i.e. foreign passport holders) can exchange foreign exchange for Indian currency notes up to a limit of ₹5000/- per week till December 15, 2016

30.12.2016: RBI/2016-2017/200

1. Closure of the scheme of exchange of SBNs at banks on December 30th 2016-Accounting

2. With the closure of the facility of exchange of SBNs as at the close of business on December 30, 2016, all banks should report information on collection of SBNs on December 30, 2016 itself at email.

Deposit of SBN in A/c

08.11.2016:  RBI/2016-2017/112

There shall not be any limit on the quantity or value of the SBN  to be credited to the account maintained with the bank by a person, where the specified bank notes are tendered;

However, where compliance with extant (KYC) norms is not complete in an account, the maximum value of specified bank notes as may be deposited shall be ₹50,000/-;

Be credited to an account maintained by the tenderer on production of valid proof of Identity;

May be credited to a third party account, provided specific authorization therefore accorded by the third party is presented to the bank, as indicated in Annex-5

09.11.2016:  RBI/2016-2017/115

V. Acceptance of deposits through cash deposit machines CDM and cash recyclers

The CDMs and CRs are configured to accept SBN (till December 30, 2016 only) using card-based authentication (no cardless deposits to be enabled for depositing SBN) for credit of amount only to the card-holders account (in other words, deposits into third party accounts cannot be accepted).

16.11.2016: RBI/2016-2017/135

Compliance with provisions of 114B of the Income Tax Rules, 1962

Anybody depositing more than ₹50,000/- in cash in their bank account has to submit a copy of the PAN card in case the bank account is not seeded with PAN

23.11.2016: RBI/2016-2017/151

1. Deposit of specified banknotes (SBN) in Small Savings Schemes

2. We advise that Government of India has decided that subscribers of Small Savings Schemes may not be allowed to deposit SBNs in Small Savings Schemes. Banks are, therefore, advised not to accept SBNs for deposits in Small Saving Schemes with immediate effect.

Cash Withdrawals

08.11.2016: RBI/2016-2017/112

(v) Cash withdrawal from a bank account over the counter shall be restricted to ₹10,000/- per day subject to an overall limit of ₹20,000/- a week from the date of the notification until the end of business hours on November 24, 2016

(vii) Withdrawal from ATMs shall be restricted to ₹2,000 per day per card up to November 18, 2016 and the limit shall be raised to ₹4,000 per day per card from November 19, 2016;

(ix) Business Correspondents (BCs) may also be allowed to exchange SBN upto ₹4000/- per person

09.11.2016 RBI/2016-2017/115

The ATM withdrawal limit 2000/-, would be within the overall withdrawal limit of ₹20,000/- in a week across all channels, including withdrawals at ATMs and at POS

13.11.2016:  RBI/2016-2017/128

Revision in limits The daily limit on withdrawal from ATMs has been increased from the existing ₹2000/- to ₹2500/- per day

The weekly limit of ₹20000/- for withdrawal from bank accounts has been increased to ₹24000 and the daily limit of ₹10000/- per day stands withdrawn.

30.12.2016: RBI/2016-2017/204

1. Cash withdrawal from ATMs - Enhancement of daily limits

2. On a review of the position, the daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 01, 2017, from the existing ₹2500/- to ₹4500/- per day per card.

14.11.2016: RBI/2016-2017/131

The current account holders (applicable to Current Accounts which are operational for last three months or more) are allowed to withdraw up to ₹50000 in a week. in ₹2000 denomination only.

20.11.2016: RBI/2016-17/141

Daily limit of withdrawal from recalibrated ATMs was increased from ₹2000/- to ₹2500/- per day

21.11.2016: RBI/2016-2017/142

Holders of current / overdraft / cash credit accounts, which are operational for the last 3 months or more, may now withdraw upto ₹50000 in cash, in a week. This is not applicable for personal OD A/c’s

21.11.2016: RBI/2016-2017/146

Revisions 2. On a review, certain modifications have been brought in the limits for withdrawal from bank accounts which are as under:

i. For farmers

Farmers may be allowed to draw upto ₹25000/- per week in cash from their loan (including KCC limit) or deposit accounts subject to their accounts being compliant with the extant KYC norms.

ii. For traders registered with APMC markets / mandis

At present all current account holders are allowed to withdraw, in cash, ₹50,000/- in a week from their current account subject to certain terms and conditions and the same is being now extended to the traders registered with APMC markets/mandis. Such traders will be permitted to draw up to ₹50,000/- from their current accounts provided that such accounts are compliant with the extant KYC norms and are operational for the last three months or more.

30.11.2016: RBI/2016-2017/165

Accounts under PMJDY – Precautions As a temporary measure,

Fully KYC compliant account holders may be allowed to withdraw ₹10,000/- from their account, in a month. The branch managers may allow further withdrawals beyond ₹10,000 within the current applicable limits only after ascertaining the genuineness of such withdrawals and duly documenting the same on bank’s record.

Limited or Non KYC compliant account holders may be allowed to withdraw ₹5,000 per month from the amount deposited through SBNs after November 09, 2016 within the overall ceiling of ₹10,000.

21.11.2016: RBI/2016-2017/145

Cash withdrawal for purpose of celebration of wedding

i. A maximum of ₹250000/- is allowed to be withdrawn from the bank deposit accounts till December 30, 2016 out of the balances at credit in the account as at close of business on November 08, 2016.

ii. Withdrawals are permitted only from accounts which are fully KYC compliant.

iii. The amounts can be withdrawn only if the date of marriage is on or before December 30, 2016.

iv. Withdrawals can be made by either of the parents or the person getting married. (Only one of them will be permitted to withdraw).

v. Since the amount proposed to be withdrawn is meant to be used for cash disbursements, it has to be established that the persons for whom the payment is proposed to be made do not have a bank account.

vi. The application for withdrawal shall be accompanied by following documents:

  1. An application as per Annex
  2. Evidence of the wedding, including the invitation card, copies of receipts for advance payments already made, such as Marriage hall booking, advance payments to caterers, etc.
  3. A detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account. The list should indicate the purpose for which the proposed payments are being made

22.11.2016: RBI/2016-2017/149

A detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account, where the amount proposed to be paid is ₹10,000/- or more. The list should indicate the purpose for which the proposed payments are being made.

Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances

21.11.2016: RBI/2016-2017/143

Provide an additional 60 days beyond what is applicable for the concerned regulated entity(RE) for recognition of a loan account as substandard in the following cases:

  1. Running working capital accounts (OD/CC)/crop loans, with any bank, the sanctioned limit whereof is ₹1 crore or less;
  2. Term loans, whether business or personal, secured or otherwise, the original sanctioned amount whereof is ₹1 crore or less, on the books of any bank or any NBFC, including NBFC (MFI). This shall include housing loans and agriculture loans.

Note: The limits at (i) and (ii) above are mutually exclusive limits applicable to respective category of loans.

1. Loans sanctioned by banks to NBFC (MFI), NBFCs, Housing Finance Companies, and PACs and by State Cooperative Banks to DCCBs.

The above guidelines will also be applicable to loans extended by DCCBs.

28.12.2016: RBI/2016-2017/198

Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances

Please refer to circular DBR.No.BP.BC.37/21.04.048/2016-17 dated November 21, 2016.

2. On a review, it has been decided to:

(i) Provide 30 days, in addition to the 60 days provided vide the above mentioned circular, in the following categories of loans:

(a) Running working capital accounts (OD/CC)/crop loans, with any bank, the sanctioned limit whereof is ₹1 crore or less;

(b) Term loans for business purposes, secured or otherwise, the original sanctioned amount whereof is ₹1 crore or less, on the books of any bank or any NBFC, including NBFC (MFI). This shall include agriculture loans.

Note: The limits at (a) and (b) above are mutually exclusive limits applicable to respective category of loans.

The above dispensation will apply to dues payable between November 1, 2016 and December 31, 2016.

(ii) Permit all REs to defer the down grade of an account that was standard as on November 1, 2016, but would have become NPA for any reason during the period November 1, 2016 to December 31, 2016, by 90 days from the date of such downgrade in the following categories of accounts:

(a) Running working capital accounts (OD/CC)/crop loans, with any bank, the sanctioned limit whereof is ₹1 crore or less;

(b) Term loans for business purposes, secured or otherwise, the original sanctioned amount whereof is ₹1 crore or less, on the books of any bank or any NBFC, including NBFC (MFI). This shall include agriculture loans.

Note: The limits at (a) and (b) above are mutually exclusive limits applicable to respective category of loans

3. The additional time given in para 2 shall only apply to defer the classification of an existing standard asset as substandard and not for delaying the migration of an account across sub-categories of NPA.

4. Dues payable after January 1, 2017 will be covered by the extant instructions for the respective REs

Interest Subvention Scheme for Short Term Crop Loans during the year 2016-17- Grant of grace period of 60 days beyond due date

26.12.2016: RBI/2016-2017/194

1. As you are aware the Government of India (GoI) has been implementing the Interest Subvention Scheme (the Scheme) since 2006-07. In terms of the extant Scheme for the year 2016-17 besides subvention of 2% per annum, an additional interest subvention of 3% is also provided to prompt payee farmers from the date of disbursement of the crop loan upto the actual date of repayment by farmers or upto the due date fixed by banks for repayment of crop loans whichever is earlier subject to a maximum period of one year from the date of disbursement. This benefit does not accrue to those farmers who repay after one year of availing such loans.

2. In view of the constraints faced by farmers for timely repayment of loan dues on account of withdrawal of legal tender status of Specified Bank Notes (SBNs) and the subsequent notification No. DBR.No.BP.BC.37/21.04.048/2016-17 dated November 21, 2016 issued by RBI, it has been decided by the GoI to provide an additional grace period of 60 days for prompt repayment incentive of 3% to those farmers whose crop loan dues are falling due between 1st November, 2016 and 31st December, 2016 if such farmers repay the same within 60 days from the above period. As regards asset classification and other prudential norms are concerned, the extant RBI guidelines, including the circular dated November 21, 2016 will continue to apply.

3. Banks may give adequate publicity to the above so that the farmers can avail the benefits.

4. Banks may consider the above while submitting their one-time consolidated 3% additional subvention claims pertaining to the disbursements made during the entire year 2016-17.

Detection of counterfeit notes in Specified Bank Notes (SBNs) - Reporting

12.12.2016    RBI/2016-2017/179

1. Please refer our circulars DCM (Plg) No.1264/10.27.00/2016-17 and DCM (Plg) No.1291/10.27.00/2016-17 dated November 11, 2016 and November 16, 2016, respectively, advising banks to report detection of counterfeit notes from the SBNs received by them, on a daily basis.

2. In continuation to the above, the bank are advised to send branch-wise report on detection of counterfeit notes as under:

Reporting Period

Report to be submitted by

November 10 to December 09, 2016

December 16, 2016

December 10 to December 16, 2016

December 23, 2016

December 17 to December 30, 2016

January 06, 2017

Preservation of CCTV recordings        

13.12.2016: RBI/2016-2017/181

1. Please refer to paragraph (5) of our circular DCM (FNVD) No.1134/16.01.05/2016-17 dated October 27, 2016 wherein it was stated that in order to facilitate identification of people abetting circulation of counterfeit notes, banks are advised to cover the banking hall/area and counters under CCTV surveillance and recording and preserve the recording.

2. In continuation to the above, the banks are further advised to preserve CCTV recordings of operations at bank branches and currency chests for the period from November 08 to December 30, 2016, until further instructions, to facilitate coordinated and effective action by the enforcement agencies in dealing with matters relating to illegal accumulation of new currency notes. 

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AAM CA Pradeep Kumar Jain 
on 11 January 2017
Published in Audit
Views : 4870






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