Individuals can now deposit the demonetized Rs 1000 and Rs 500 notes in Post Offices savings accounts, the Finance Ministry said on Wednesday.
Earlier, the RBI advised banks not to accept specified bank notes (SBNs) for deposits in Small Saving Schemes with immediate effect. Small savings schemes include Post Office Schemes, Sukanya Samriddhi Yojana and Public Provident Fund (PPF).
But the Government on Wednesday exempted Post Office saving account from the ban on accepting deposits of demonetized Rs 500 and Rs 1,000 notes in small schemes. The deposits into Post Office Savings Account are now excluded from the bar imposed.
Any individual can open a Post Offices savings accounts and the accounts are not permissible. Interest rates in Post Offices savings accounts as of now is 4% per annum.
November 24 is the last day to use the demonitized Rs 500 and Rs 1000 notes at public utilities. Due to the shortage of new notes, people can only exchange Rs 2000 per day in bank.