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Demonetization: SC notice to Centre on plea of Pune cooperative bank

NEW DELHI: The Supreme Court today sought a response of the Centre and the RBI on a plea of Pune district central cooperative bank seeking a direction to accept from it over Rs 22.25 crore in demonetised notes.

Demonetization

A bench of Chief Justice J S Khehar and Justice D Y Chandrachud issued notice to the government and the Reserve Bank of India on the petition which claimed that the amount was with the cooperative bank as cash in hand at close of business hour on November 8, 2016.

Senior advocate P Chidambaram, appearing for the cooperative bank, said that it could not deposit the entire stock of currency notes.

The cooperative bank has sought an “amendment in a government notification of December 17, 2016 by which its earlier notification of November 8, 2016 was amended “to enable petitioner (bank) and other similarly placed district central cooperative banks to deposit with linked currency chests or RBI their specified bank notes (SBNs) forming part of cash in hand as at close of November 8, 2016 in the interest of justice.”

It said the bank be allowed to deposit Rs 22.25 crore in demonetised currency notes for the purpose of protection of its fundamental right as well as that of its members and customers.

The plea said the district central cooperative bank (DCCB) has to be treated at par with other banking companies.

It said that over Rs 551.61 crore was deposited with it by the customers in the form of SBNs from November 10 to 14, 2016, and multi-level know your customer (KYC) verification was carried for account holders in its 261 branches, and this was a valid ground for allowing it to deposit over Rs 22.25 crore which was part of cash in hand as on November 8, 2016.
WITH PTI