The Reserve Bank of India (RBI) on Wednesday asked banks not to accept demonetised Rs 500 and Rs 1,000 notes for deposit in the small savings schemes, with immediate effect, an official notification said. No reason was assigned for the move.
“Government of India has decided that subscribers may not be allowed to deposit demonetised currency in small savings schemes. Banks are, therefore, advised not to accept the old Rs 500 and Rs 1,000 notes for deposits in small saving schemes with immediate effect,” RBI said in a notification.
The small savings schemes include Public Provident Fund (PPF), Post Office Saving Schemes, National Savings Certificates (NSC), Senior Citizen Savings Scheme (SCSS) Account and Kisan Vikas Patra (KVP) among others.
The government announced demonetisation of Rs 500 and Rs 1,000 notes on November 8 midnight.
The old notes can still be used at places like government hospitals, petrol pumps, metro ticket counters and for payment of utility bills till November 24.