Here’s why accounts with deposits lesser than Rs 2.5 lakh in cash should be worried

Although deposit limit of demonetized notes has been Rs 2.5 lakh, above which inquiry may be conducted, a recent development suggests that even people with lesser deposits aren’t really safe.

RBI is keeping a track of all accounts and has asked banks to red flag those, which has never had a big amount deposits before. Thus if this is the first time, you are depositing Rs 2 lakh, while your account has never gone above Rs 10,000, you should be worried.

The central bank has ordered banks to provide data on such accounts as it steps up efforts to ensure that the banking system is not misused to launder black money after the demonetisation drive that was announced on November 8, people familiar with the matter told The Economic Times.

Banks are currently providing information to the Financial Intelligence Unit on accounts where customers have deposited Rs 2.5 lakh or more in cash. This comes as raids have uncovered bundles of currency stashed away in bank lockers or being transported across the country. Several bank employees, including one RBI official, have been suspended or sacked for unauthorised exchange of notes amid a currency shortage that has hit regular customers and hurt the economy. RBI has written to banks asking for details of accounts at specific branches, particularly those in tier-II and tier-III cities that have witnessed abnormal jumps in deposits.