Source: News Bharati English13 Dec 2016 10:10:31
New Delhi, December 13: The Reserve Bank directed banks to keep record of new bank notes in view of seizures by Income Tax Department and other law enforcement agencies of large quantities of high denomination notes. In a letter written to chief executive officers of public sector banks, the Finance Ministry asked that "maintenance of records regarding deposit of Specified Bank Note (SBN) and Non-SBN is essential both in the bank record as well as the customer’s record".
It has been felt necessary to put in place an appropriate reporting system to keep track of issuance of these banknotes by the currency chests, RBI said in a statement. In view of the above, the banks are advised to maintain, at the currency chest level and at link branches level, a daily record of issuances showing the serial numbers of Rs 500 and above received from RBI as remittance and issuance to their own branches, branches of other banks and post offices, branch wise and denomination wise on daily basis, it said.
"The letter addressed to all the Managing Directors of state-owned banks and Chairman of Indian Banks' Association, the Department of Financial Services directed them consider this on urgent basis and send action taken report in this regard by December 16."
"This must be followed scrupulously and any deviation in this regard has to be prevented and if noticed, dealt with firmly and immediately," it said. The daily record of issuances should be signed by joint custodians and the branch manager at the end of the day.
Yesterday, the Finance Ministry asked all public sector banks to strictly maintain record of deposits made through both old Rs 500/1,000 notes and other valid currencies. The ministry also appreciated the role played by the banks post-demonetization especially when the old currency was accepted and till 24 November, when exchange of old currency to specified limit was also permitted.
According to the RBI, nearly Rs 12 lakh crore out of Rs 15.4 lakh crore of old high denomination currency notes have come back to the banking system since Prime Minister Narendra Modi scrapped the legal tender of Rs 500 and Rs 1,000 notes from the midnight of 8 November to fight the menace of black money.