RBI Issues New Circular Regarding Ban On Deposit of Old Notes in Existing Saving Accounts of Students

In a probe to curb the black money policy as well as banishing the old notes at a massive level, Reserve Bank of India has issued a new circular to all the leading banks and financial institutions regarding the ban on the deposit of old notes in the existing small saving accounts which are mainly possessed by the students.

The circular forwarded to all the major banks in India include banishing of old notes from all the Written/Basic Small Savings Account which mainly comprises of JanDhan a/c, MANREGA a/c, Students a/c and so on. The decisioncame in the midst of highly churned up demonetisation probe where Union Cabinet came up with the decision hence forwarding the circular issued by RBI to all the leading banks such as SBI, Post Offices, Nainital Bank Lead, Bank of Rajasthan, etc.

According to online news major Amar Ujala, The following step comes as a major setback to all the students who have zero balance account or such similar type of low term accounts. Nainital Bank Lead Bank Manager D K Jaiswal gave the confirmation stating that the Reserve Bank of India has issued and provided the circular to all the banks and they received it afew hours back, only.

Since the demonetization probe, up till now RBI has issued 27 circulars in just 14 days most of them related to old notes ban in the respective bank accounts. To bring enough liquidity in the system, the scrapping of old notes in bank accounts will help in boost the economy. Apart from issuing previous circulars, this particular issue of banishing old notes from the existing small saving account might result in alot of chaos amongst the students.