The reserve bank of India, RBI while issuing a notification on Wednesday asked all the banks not to accept demonetized Rs 500 and Rs 1,000notes for deposit in the small savings schemes, with immediate effect. Since the demonetization announcement on November 8, the ministry said it has received references from banks on whether these high denomination currency notes can be deposited in accounts opened under small saving schemes.
Banned old notes can’t be deposited in small saving schemes: RBI
With this decision, people cannot deposit the old currency notes which have banned of RS 500 and 1,000 notes in their PPF accounts or National saving certificate, post office savings scheme, Kisan Vikas Patra and the senior citizen saving scheme.
“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,” RBI said in a notification.
Old denomination of RS 500 and Rs 1000 can be used in some places
The government announced demonetization of Rs 500 and Rs 1,000 notes on November 8 midnight. However, the old notes can still be used at some places such as government hospitals, petrol pumps, metro ticket counters and for payment of utility bills till November 24.
The government said that till November 18 people have exchanged and deposited over Rs 5.44 crore of banned notes and the banks have distributed Rs 1.03 lakh crore over the counter and via ATMs.