Government Enables Co-Operative Banks To Deposit Old Notes With RBI

Express News Global

The relaxation comes versus the background of reports that numerous district co-operative banks did not have adequate money to pay out to farmers.

Express News Global Desk|Composed by Abhishek Vasudev|Last Updated: June 21, 2017

Banks can transfer old notes with RBI within 30 days.
Banks can transfer old notes with RBI within 30 days.

New Delhi: The Finance Ministry on Tuesday enabled banks, post workplaces and district main cooperative banks to transfer the ditched Rs. 500 and 1,000 rupee notes with the Reserve Bank of India within 30 days and exchange the worth of notes deposit with the brand-new notes.

In a main alert the Finance Ministry stated, “Specified bank notes might be transferred by such Bank, Post Office or District Central Cooperative Bank, as the case might be, in any workplace of the Reserve Bank, within a duration of 30 days from the beginning of these guidelines, and get the exchange worth thereof by credit to the account of such Bank, Post Office or District Central Cooperative Bank, as the case might be, based on the fulfillment of the Reserve Bank of the conditions defined in the stated alert and the factors for non-deposit of the defined bank notes within the duration under that notice.”

The relaxation comes versus the background of reports that lots of district co-operative banks did not have sufficient money to pay out to farmers, especially in Maharashtra. The factor, the banks state, is that almost 6 months after demonetisation, they still have crores of money in old currency, which the Reserve Bank of India (RBI) is contradicting.

Nashik’s District Central Cooperative Bank informed NDTV they still have a stockpile of Rs. 340 crore in old 500 and 1,000 notes. Unless this loan is transformed to brand-new, payments will be tough to make, stated Narendra Darade, Chairman of Nashik’s DCCB.

The demonetisation of high worth currency notes of Rs. 1,000 revealed on November 8, 2016 led to ditching of over Rs.

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