RBI's latest notification: Yes, you can now deposit over Rs 5000 in old notes

The RBI on Wednesday withdrew an earlier notification which said that people can make only one deposit over Rs 5000 during the remaining period of cash exchange that ends on December 30.

RBI's earlier notification had said: "Tenders of SBNs in excess of Rs 5000 into a bank account will be received for credit only once during the remaining period till December 30, 2016."

It also said that the credit in such cases shall be afforded only after questioning 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.

"The explanation should be kept on record to facilitate an audit trail at a later stage. An appropriate flag also should be raised in CBS to that effect so that no more tenders are allowed," it further said.

However, responding to the public concerns that it had caused, the central bank today relaxed its restrictions. It  withdrew the notification which said that people can make only one deposit over Rs 5000 during the remaining period of cash exchange that ends on December 30.

While there is still some confusion over the ever-changing notifications, what exactly is the implication of RBI's 'notification today? We have tried to simplify it a bit for you:

1. Yes, you can now deposit over Rs 5,000 in the banks in old Rs 500 and Rs 1000 notes.

2. No, you will not be questioned by bank officials if you make a deposit of over Rs 5000.

3. Yes, you can make deposit your money more than once, and the bank will not question even if it the total amount exceeds Rs 5000.

Please note that the RBI mentions that for these to be valid, the bank account has to be KYC compliant.