Co-op banks got a partial relief on Thursday as the govt committed in the apex court that it would allow these banks to collect demonetized currency and deposit it in Reserve Bank of India. But the Court declined to make co-op banks a co-player in the “remonetization exercise” saying it may affect the govt move.
The court, however, allowed cooperative banks to deposit in the RBI invalid notes they had accepted from Nov 10 to 14. The court also asked ” can’t cooperative banks wait till 31st December”?
The court was hearing petitions filed by Cooperative banks against the restrictions placed on them in the wake of demonetization. Earlier, the court had asked the Centre not to show any kind of discrimination to Cooperative banks.
The Attorney General has assured that the Centre will issue the necessary notification within two days. In the papers submitted in the Supreme Court it was stated that the government would like to allow the district co-operative banks to collect demonetized currency and deposit it in Reserve Bank of India.
AG , however insisted that co-op banks can accept deposits only from KYC complaint accounts.
The Supreme Court bench headed by Chief Justice of India Tirath Singh Thakur said that the court will examine the matter. He also raised concerns on how some people were able to garner lakhs of cash.
On this Attorney General Rohatgi said that some Bank Managers are involved in the illegal change of demonetised currency and government is acting against the culprits allegedly involved in these kinds of activities.