**Policy Summary: RBI/2016-17/62: Income Declaration Scheme, 2016 - Acceptance of Cash Over the Counter**
This circular, issued by the Reserve Bank of India (RBI) on September 8, 2016, addresses the acceptance of cash deposits related to the Income Declaration Scheme, 2016. The circular, reference number RBI20161762 DBR.No.Leg.BC. 1309.07.005201617, is directed to all Scheduled Commercial Banks, including Regional Rural Banks (RRBs).
The circular clarifies that banks must accept cash, regardless of the amount, from individuals declaring income under the Income Declaration Scheme, 2016, for credit to the government account via challan ITNS 286. This directive supersedes any internal policies restricting cash deposits over the counter.
Banks are reminded to adhere to Know Your Customer (KYC) guidelines as outlined in Master Direction, 2016 issued vide DBR.AML.BC.No.81/14.01.001/2015-16 dated February 25, 2016 for both existing and walk-in customers. Banks are instructed to immediately inform their branches of these instructions to ensure smooth processing of tax deposits under the Scheme.
For further information, contact Rajinder Kumar, Chief General Manager, Department of Banking Regulation, Central Office, Reserve Bank of India, 12th Floor, Central Office Building, Shahid Bhagat Singh Marg, Mumbai, 400001. Contact information includes telephone number 912222661602, fax number 912222705691, and email ID cgmicdbodcorbi.org.in.
Key Entities Referenced
Income Declaration Scheme, 2016: A scheme that came into effect from June 1, 2016, allowing individuals to declare undisclosed income and pay taxes.
All Scheduled Commercial Banks including RRBs: Refers to all commercial banks and Regional Rural Banks that are regulated by the Reserve Bank of India.
DBOD.No.Leg.BC.3809.07.005200809: Reference number of a circular issued by the Department of Banking Operations and Development (DBOD) on August 28, 2008, regarding acceptance of cash deposits.
Government: The governing body, in the context of the policy document it refers to the government of India
challan ITNS 286: A specific challan form used for depositing tax dues under the Income Declaration Scheme, 2016.
Know Your Customer: A set of regulations and guidelines that banks must follow to verify the identity of their customers and understand their financial activities.
Master Direction Know Your Customer: A comprehensive set of instructions issued by the Reserve Bank of India (RBI) on Know Your Customer (KYC) norms and Anti-Money Laundering (AML) standards.
Mumbai, Maharashtra: City in India where the Central Office Building of the Department of Banking Regulation is located.
RBI/2016-17/62
DBR.No.Leg.BC. 13/09.07.005/2016-17 September 8, 2016
The Managing Directors/Chief Executive Officers
All Scheduled Commercial Banks (including RRBs)
Dear Sir,
Income Declaration Scheme, 2016 –
Acceptance of Cash Over the Counter
Please refer to the Circular DBOD.No.Leg.BC.38/09.07.005/2008-09 dated August
28, 2008 wherein banks have been advised to ensure that their branches invariably
accept cash from all their customers who desire to deposit cash at the counters.
Further, they were also advised to refrain from incorporating clauses, in the terms
and conditions, which restrict deposit of cash over the counters.
2. As you are aware, the Income Declaration Scheme, 2016 (the Scheme) has
come into effect from June 1, 2016 and some declarants may like to pay their tax
dues in cash. In this connection, it has been brought to our notice by the
Government that banks are hesitant in allowing deposit of large amounts of cash by
the declarants under the Scheme, with them, for credit to Government account.
3. We advise that banks must invariably accept cash, irrespective of amount, over
the counters from all declarants who desire to deposit cash at the counters, including
deposits under the above Scheme through challan ITNS- 286. In this connection,
banks shall comply with the Know Your Customer requirements for customers and
walk-in customers as contained in Master Direction – Know Your Customer
___________________________________________________________________________
(cid:157)बकैं िंग विनियमि विभाग, ेंद्रीय ायाालय, 12 िी मिंजिल, ेंद्रीय ायाालय भिि, शहीद भगतस हिं माग ा म िंबई 400001
Department of Banking Regulation, Central Office, 12th Floor, Central Office Building, Shahid Bhagat Singh Marg,, Mumbai,400001
टेलीफ़ोन/Tel No:91-22-22661602 फ़ैक् /Fax No:91-22-22705691 Email ID:cgmicdbodco@rbi.org.inRBI,DBR, CO - 2 - continuation sheet
Direction, 2016 issued vide DBR.AML.BC.No.81/14.01.001/2015-16 dated February
25, 2016.
4. You are advised to immediately issue appropriate instructions to your branches as
indicated above so that the declarants do not face any difficulty in depositing tax
dues under the Scheme.
Yours faithfully,
(Rajinder Kumar)
Chief General Manager