The Reserve Bank of India (RBI) has imposed restrictions on the quantum of old Rs 500 and Rs 1,000 notes that can be deposited in bank accounts. RBI imposed stiff restrictions on depositing more than Rs 5000 only once per account till December 30.

The new restrictions are meant to encourage deposits of demonetised currency notes under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.

December 30 is the deadline for depositing the old notes. The RBI said that the depositor has to give an explanation as to why the old notes were not deposited earlier. The amount will be credited in the bank account only after receiving a satisfactory explanation. The explanation should be kept on record to facilitate an audit trail at a later stage, the RBI said.