RBI circular on currency: Cooperative Bank in Mumbai moves Bombay High Court, wants circular revoked

The petition states that the circular is discriminatory and arbitrary besides violating fundamental rights.

By: Express News Service | Mumbai | Published:November 17, 2016 2:31 am

The Mumbai District Cooperative Bank has filed a petition in the Bombay High Court against an RBI circular preventing cooperative banks from accepting deposits in demonetised currency notes. The petition seeks setting aside of the circular.

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Mumbai District Cooperative Bank is chaired by BJP member Pravin Darekar. The petition states that the circular is discriminatory and arbitrary besides violating fundamental rights. “No reason has been given for singling out cooperative banks like this. We act as bankers to other cooperative societies within Mumbai district. If the circular is followed, cooperative societies will not be able to deposit the discontinued currency notes with their banker. This would cause loss to members of such societies,” states the petition.

It further added that various hospitals, petrol pumps, medical stores have their accounts with the bank. They too will be affected, according to the petition.

“There are 1,03,873 saving accounts operating by individuals and 12,285 saving accounts opened by housing societies,” the petition states. It adds that the circular would affect people who have taken loans and pay their EMI through cash.