The Finance Ministry on Saturday asked all banks to report cash deposits made into savings accounts between April 1 and November 9 last year. It also directed banks to ask account holders who did not provide their Permanent Account Number of Form 60 (for those without a PAN) to do so by February 28 this year. The central government had demonetised Rs 500 and Rs 1,000 notes on November 8, 2016, in a effort to weed out black money holders.
The Income Tax Department had earlier instructed banks to keep track of deposits over Rs 2.5 lakh, which I-T officials would then investigate. Deposits of more than Rs 50,000 a day also had to be reported, according to PTI. Money over Rs 12.5 lakh put into current accounts will also be looked into. Finance Minister Arun Jaitley clarified that large deposits of money would be investigated. After demonetisation decision, I-T authorities have been investigating alls high-value bank deposits and keeping tabs on unaccounted money and possible money laundering.
The Reserve Bank of India has not yet released figures of how much money has been deposited in the country’s banks following demonetisation. The scrapped notes made up 86% of liquidity in India at the time of demonetisation.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!