RBI rolls back cash deposit curb with immediate effect

[MUMBAI] The Reserve Bank of India on Wednesday rolled back a recent curb on cash deposits that had been put in place just 10 days before the end of the government's demonetisation deadline of Dec 30.

The measure had directed banks to question any individual depositing more than 5000 rupees (S$106) in old discontinued notes in the days leading up to the deadline.

Customers had to give the banks a satisfactory reason on why they had not deposited the funds earlier.

In a one-line notification, the RBI withdrew the rule on Wednesday for all accounts which have been verified by banks by providing so-called 'know-your-customer' documents, but did not cite any reason for the same.

REUTERS