1. DCCBs can deposit banned notes collected only between November 10-14, says RBI

DCCBs can deposit banned notes collected only between November 10-14, says RBI

The Reserve Bank today said district central cooperative banks (DCCBs) can deposit banned bank-notes exchanged or collected only between November 10-14 last year under a special window till July 19.

By: | Mumbai | Published: June 30, 2017 1:14 AM
RBI, Reserve Bank of India, district central cooperative banks, bank-notes exchanged, currency, Indian banks, economy Specified banned notes (SBNs) of Rs 500 and Rs 1,000 held as on November 8, 2016 at the close of banking hours will not be eligible, the RBI said in a notification this evening. (Reuters)

The Reserve Bank today said district central cooperative banks (DCCBs) can deposit banned bank-notes exchanged or collected only between November 10-14 last year under a special window till July 19. Specified banned notes (SBNs) of Rs 500 and Rs 1,000 held as on November 8, 2016 at the close of banking hours will not be eligible, the RBI said in a notification this evening. The ones accepted by DCCBs after November 14 are also not eligible for exchange, the central bank said. The RBI notification comes after the government last week had come out with a Gazette notification giving DCCBs a one-month window to deposit the banned notes for credit into the accounts till July 20.

Fearing money laundering and also collection of fake bills, the apex bank had stopped the DCCBs from accepting banned notes from November 15 onward. Last December, the government had made a commitment to the apex court that it would soon issue a notification allowing DCCBs to deposit the demonetised notes with the RBI.

Attorney General Mukul Rohatgi had told a Supreme Court bench headed by the then Chief Justice TS Thakur that the DCCBs in Maharashtra alone had collected Rs 5,000 crore in old banned notes of Rs 500 and Rs 1,000 denomination in just four days, from November 10-14, when they were allowed to accept them. He had also said a total of Rs 8,000 crore had been received by the banks across the country.

The November 10-14 window was ambiguous for cooperative banks, post which these banks had challenged government’s notification in the court. The RBI today said DCCBs can use facilities at RBI regional offices in Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram till July 19 for depositing these notes.

DCCBs may deposit eligible banned notes with RBI under the bank’s guarantee scheme. Credit to the account of the bank concerned will be subject to satisfaction of RBI on the reasons for non-deposit of notes within the stipulated period, it added. These notes will be subjected to detailed examination for accuracy and authenticity in the presence of representative from the DCCB concerned, it said.

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