RBI

Old Notes cannot form part of bank cash balances as on 31-12-2016. RBI Circular-Closure of scheme of exchange of SBNsand Accounting

Old Notes cannot form part of bank cash balances as on 31-12-2016. RBI Circular-Closure of scheme of exchange of SBNs and Accounting

RBI/2016-17/201
DCM (Plg) No.2103/10.27.00/2016-17                                                                                     December 30, 2016

The Chairman / Managing Director / Chief Executive Officer
Public Sector Banks / Private Sector Banks / Foreign Banks /
Regional Rural Banks / Urban Co-operative Banks /
State Co-operative Banks / District Central Co-op Banks

Dear Sir,

Closure of the scheme of exchange of Specified Bank Notes (SBNs) at banks on December 30th 2016- Accounting

Please refer to Para 3 (C) of our Circular DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 on “Withdrawal of Legal Tender Character of existing ₹ 500/- and ₹ 1000/- Bank Notes”.

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. Banks should make arrangements to gather the information from all its branches accordingly.

3. All bank branches (other than those of DCCBs) who have accumulated SBNs as at the close of business on December 30, 2016 are required to deposit the same in any Issue Office of the Reserve Bank or a currency chest on December 31, 2016 itself.

4. SBNs cannot form part of banks’ cash balances from the close of business as on December 31, 2016.

5. However, DCCBs may retain the SBNs received between November 10 and 14, 2016 till receipt of further instructions. (Please refer to our circular DCM (Plg) No. 1294/10.27.00/2016-17 dated November 17, 2016 in this regard).

6. Banks maintaining currency chests may make necessary arrangements to facilitate the deposit of SBNs received through linked branches /other branches of banks /post offices. Reporting of the transactions in ICCOMS will be enabled beyond 9.00 PM till all the deposits are received and accounted for.

7. To facilitate storage of SBNs, banks maintaining currency chests may utilise additional space in their existing currency chest or additional storage space at the same centre with the proviso that it is as safe and secure as a currency chest. Please refer to our circular DCM (Plg) No. 1294/10.27.00/2016-17 dated November 17, 2016 in this regard.

8. Please acknowledge receipt.

Yours faithfully,

(P Vijaya Kumar)
Chief General Manager

Share

Recent Posts

  • Income Tax

Prima facie satisfaction u/s 148 can not be a non-existing or incorrect information

The prima facie satisfaction u/s 148 cannot be stretched to a non-existing information or incorrect information - ITAT In a…

17 hours ago
  • SEBI

Mutual Funds to value physical Gold and Silver by using the polled spot prices

Mutual Funds to value physical Gold and Silver by using the polled spot prices published by the recognized stock exchanges…

1 day ago
  • bankruptcy

SC allows simultaneous CIRP proceedings against principal debtor & corporate guarantor

Supreme Court allows simultaneous CIRP proceedings against principal debtor and its corporate guarantor, declines to frame any guidelines In a…

1 day ago
  • Income Tax

Merely because sales were declared for only one month, same cannot be treated as bogus

Merely because assessee had declared sales for only one month, the same cannot be treated as bogus on the basis…

2 days ago
  • Income Tax

ITAT deleted addition as method of accounting had been accepted in earlier years

ITAT deleted addition as the method of accounting had been accepted by the department in earlier years and the entire…

3 days ago
  • Benami

Orders passed under Benami Act cannot be challenged under IBC 2016 – SC

Orders passed under Benami Act cannot be challenged under Insolvency and Bankruptcy Code, 2016 - SC In a recent judgment,…

4 days ago