Page 51 - Banking Finance JANUARY 2017

RBI CIRCULAR

smaller than Rs 5000 are made in an account and such 10.27.00/2016-17 dated November 08, 2016, the
tenders taken together on cumulative basis exceed Rs 5000 Government has been taking several measures in
they may be subject to the procedure to be followed in case consultation with the various stakeholders to incentivise
of tenders above Rs 5000, with no more tenders being greater adoption of digital payments by large sections
allowed thereafter until December 30, 2016. of the society. As a temporary measure, it has now been
decided that all participating banks and Prepaid
It may also be ensured that full value of tenders of SBNs in Payment Instrument (PPI) issuers shall not levy any
excess of Rs 5000 shall be credited to only KYC compliant charges on customers for transactions upto Rs 1000
accounts and if the accounts are not KYC compliant credits settled on the Immediate Payment Service (IMPS),
may be restricted up to Rs 50,000 subject to the conditions USSD-based *99# and Unified Payment Interface (UPI)
governing the conduct of such accounts. systems.
2. The above measures shall come into effect from
The above restrictions shall not apply to tenders of SBNs January 1, 2017 and shall be applicable till March 31,
for the purpose of deposits under the Taxation and 2017. In the intervening period, the Reserve Bank of
Investment Regime for the Pradhan Mantri Garib Kalyan India will facilitate a review of the charges under the
Yojana, 2016. aforesaid channels by the concerned stakeholders.

The equivalent value of specified bank notes tendered may 3. The directive is issued under Section 10(2) read with
be credited to an account maintained by the tenderer at Section 18 of Payment and Settlement Systems Act
any bank in accordance with standard banking procedure 2007, (Act 51 of 2007).
and on production of valid proof of Identity.
Yours faithfully
The equivalent value of specified bank notes tendered may (Nanda S. Dave)
be credited to a third party account, provided specific Chief General Manager
authorisation therefore accorded by the third party is
presented to the bank, following standard banking Preservation of CCTV recordings
procedure and on production of valid proof of identity of RBI/2016-17/181
the person actually tendering, as indicated in Annex-5 of DCM (Plg) No. 1712/10.27.00/2016-17
our circular cited above.
Dear Sir,
Yours faithfully 1. Please refer to paragraph (5) of our circular DCM
(P Vijaya Kumar) (FNVD) No.1134/16.01.05/2016-17 dated October 27,
Chief General Manager 2016 wherein it was stated that in order to facilitate
identification of people abetting circulation of
Special Measures upto March 31, 2017 : counterfeit notes, banks are advised to cover the
Rationalisation of customer charges for banking hall/area and counters under CCTV surveillance
and recording and preserve the recording.
Immediate Payment Service (IMPS),
2. In continuation to the above, the banks are further
Unified Payment Interface (UPI) & advised to preserve CCTV recordings of operations at
Unstructured Supplementary Service Data bank branches and currency chests for the period from
(USSD) November 08 to December 30, 2016, until further
instructions, to facilitate coordinated and effective
RBI/2016-17/185 action by the enforcement agencies in dealing with
DPSS CO.PD.No.1516/02.12.004/2016-17 matters relating to illegal accumulation of new
currency notes.
Dear Madam/ Sir,
1. Following the withdrawal of legal tender characteristics Yours faithfully,
of existing Rs 500/- and Rs 1000/- Bank Notes (Specified (P Vijaya Kumar)
Bank Notes - SBN) vide Circular No.DCM (Plg) No.1226/ Chief General Manager 

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