SC rejects Nashik Cooperative bank’s plea for exchange of Rs 371 crore scrapped currency

SC rejects Nashik Cooperative bank’s plea for exchange of Rs 371 crore scrapped currency

The Nashik District Central Cooperative Bank Ltd had deposited demonetized currency of Rs. 371 Crore to RBI for exchange. However, RBI (the Reserve Bank of India) has refused to accept the scrapped currency for exchange.

Nashik District Central Cooperative Bank Ltd. pleaded in Supreme Court against this action of RBI. But it seems that even Supreme Court is in favour of RBI as it rejected the bank’s plea to exchange the currency.

The plea was dismissed by the Chief Justice J.S. Khehar. As per the plea, the bank need to exchange Rs. 371 Crore else all the 281 branches of this bank in Nashik will have to be closed. If the bank does not get the amount exchanged, it will not be able to maintain the liquidity ratio as decided by Reserve Bank of India. Mr. Rajeev Dhavan (Senior Advocate), who is appearing for the cooperative bank, shared this information.

Mr. Dhavan is emphasising the fact that this entire amount is already inspected by NABARD. And, therefore, this should be accepted by RBI for exchange. This will be helpful for cooperative bank in order to maintain the required liquidity ratio.

If liquidity ratio is not met, then all the branches of this bank will have to be closed. This will directly impact the farmers as this bank has issued most of the agricultural loans to the farmers. But still, as of now, there seems to be no success for Mr. Dhavan and in turn for Nashik District Central Cooperative Bank Ltd.

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