POLITICS

Congress Mocks RBI, Calls It 'Reverse Bank Of India'

"In last 43 days of demonetisation, they have changed the norms 126 times now."

21/12/2016 2:46 PM IST | Updated 21/12/2016 3:00 PM IST
Danish Siddiqui / Reuters

NEW DELHI -- A day after Congress vice president Rahul Gandhi mocked the Reserve Bank of India (RBI) over the constant change in its rules post demonetisation, the recent u-turn in which the ₹5000 deposit restriction for KYC compliant accounts was withdrawn, became fodder for the grand old party who took a swing at RBI saying it has now become the 'Reverse Bank of India'.

"Reserve Bank of India has become Reverse Bank of India. In last 43 days of demonetisation, they have changed the norms on demonetisation 126 times now. On 17 December they said you cannot deposit more than ₹5,000 up to 30 December violating their 8 November notification," Congress leader Randeep Surjewala told ANI.

The Reserve Bank of India(RBI) on Monday announced that deposits of old ₹500 and ₹1,000 notes exceeding ₹5000 shall be made only once per account until 30 December but after a satisfactory explanation.

Tenders of Specified Bank Notes (SBN) in excess of ₹5000 into a bank account will be received for credit only once during the remaining period till 30 December, 2016. The credit in such cases shall be afforded only after questioning the tenderer, on record, in the presence of at least two officials of the bank, as to why this could not be deposited earlier and receiving a satisfactory explanation.

However, taking a u-turn today, the Central Bank partially reversed the rule that restricted people from depositing over ₹5000 in old banknotes more than once till 30 December.

The relaxation will, however, apply to 'fully Know your Customer (KYC) compliant accounts' where KYC pertains to customer information details.

Surjewala said the latest relaxation provided to the KYC account holders is discriminatory and divides the bank accounts into those of the rich and poor.

"Now they are saying, it would not apply to Know Your Customer (KYC) account holder. The restriction of ₹5000 will continue to apply on those poor people who have not been able to connect their accounts to an Aadhaar card or PAN card. So, you have two kinds of accounts in this country - If you're poor or semi-illiterate and you have not connected your bank account and converted it into KYC account, you can't deposit more than ₹5,000, while the rest can," he said.

Former finance minister P. Chidambaram on Tuesday took a potshot at the government saying that neither RBI nor Jaitley have credibility.

"Breaking PM's promise of 8 November and FM's assurance of 11 November, RBI makes new rule on deposit, FM contradicts. Who should citizen believe? Neither has credibility," he tweeted.

The consecutive changes in the policies related to the currency ban have raised uncertainty among the masses and criticism from the opposition.

Echoing similar sentiments, Congress vice president Rahul Gandhi had said, "RBI is changing rules like the PM changes his clothes," in a tweet.

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