RBI Allows District Cooperative Banks To Deposit Old Notes Stock

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Mumbai: District Cooperative banks can surrender their stock of old scrapped notes with the Reserve Bank of India within 30 days, a Finance ministry directive states, according to NDTV.

These banks have also been allowed to exchange the value of old notes by seeking new legal tenders.

In the Finance Ministry statement,it was stated that:

“Specified bank notes may be deposited by such Bank, Post Office or District Central Cooperative Bank, as the case may be, in any office of the Reserve Bank, within a period of 30 days from the commencement of these rules, and get the exchange value thereof by credit to the account of such Bank, Post Office or District Central Cooperative Bank, as the case may be, subject to the satisfaction of the Reserve Bank of the conditions specified in the said notification and the reasons for non-deposit of the specified bank notes within the period under that notification.”

Earlier, reports had claimed that a number of district central cooperative banks did not have enough cash to give them to farmers. The situation has been worse in Maharashtra where farmers had gone on a strike recently.

Many cooperative banks say that the RBI is not accepting their huge stockpile in old Rs 1,000 and Rs 500 currency notes that were banned under demonetisation drive started on November 8 last year.

Nashik’s District Central Cooperative Bank told NDTV they still have a stockpile of Rs 340 crore in old Rs 500 and Rs 1,000 notes.  “Unless this money is converted to new, payments will be hard to make,” NDTV quoted Narendra Darade, Chairman of Nashik’s DCCB as saying.

The ‘abrupt’ notes recall decision sucked out a total currency worth Rs 15 lakh crore form the banking system thus leading to long queues outside ATM booths and bank branches across the country.