Cooperative bank : RBI rejected Rs 22 crore in old notes

Cooperative bank : RBI rejected Rs 22 crore in old notes
Posted by
Story Dated : July 22, 2017

A Pune cooperative bank on Friday complained to the Supreme Court that RBI was not accepting scrapped currency notes of Rs 500 and Rs 1000 amounting to Rs 21.96 crore lying with it as deposits accepted before November 9, when the demonetisation came into effect.

At a time when ten petitioners are awaiting a fresh window for exchange of scrapped currency notes, senior advocate P Chidambaram told a bench of Chief Justice J S Khehar and Justice D Y Chandrachud that the cooperative bank has been writing to RBI and NABARD, but there has been no response so far.

Appearing for Pune District Central Cooperative Bank Ltd, Chidambaram said that at the beginning of the demonetisation exercise, the cooperative banks were permitted to accept deposits in scrapped currency notes but it was discontinued a week later. “These banks have accepted deposits worth over Rs 100 crore and are not being able to exchange it… There was no logic in not accepting scrapped notes which documents establish were accepted before demonetisation.” The bench sought RBI’s response in two weeks.