Demonetisation: Old currency notes can be deposited in post office accounts, says Finance Ministry

The demonetised Rs 500 and 1,000 notes can be used for deposits in post office savings accounts, the Finance Ministry clarified on Wednesday.

By Ritesh K Srivastava | IANS| Last Updated: Nov 24, 2016, 05:19 AM IST
Demonetisation: Old currency notes can be deposited in post office accounts, says Finance Ministry

New Delhi: The demonetised Rs 500 and 1,000 notes can be used for deposits in post office savings accounts, the Finance Ministry clarified on Wednesday.

"The deposits into Post Office Savings Account are excluded from the bar imposed therein (on deposits of demonetised Rs 500 and Rs 1,000 notes in small saving schemes)," a statement from the ministry said.

The Reserve Bank of India (RBI) had earlier in the day asked banks not to accept demonetised Rs 500 and Rs 1,000 notes for deposit in the small savings schemes, with immediate effect. No reason was assigned for the move.

"The government 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), 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.