Pune District Central Cooperative Bank avoids run-in with RBI, decides to wait and watch

The directors also indicated that in case the government fails to remove technical difficulties in the process, they would not be averse to filing a contempt petition in the Supreme Court.

By: Express News Service | Pune | Published:December 23, 2016 12:08 am

THE board of directors of the Pune District Central Cooperative Bank (PDCCB) has decided to adopt a wait-and-watch approach till January 3 about the remittance of withdrawn currency notes.

However, the directors also indicated that in case the government fails to remove technical difficulties in the process, they would not be averse to filing a contempt petition in the Supreme Court.

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Days after demonetisation, the Reserve Bank of India (RBI) had barred the DCCBs from accepting deposits in, or exchanging, old currency notes. The currency chest banks had also refused to exchange the Rs 4,700 crore deposited with the DCCBs between November 10 to 14.

Last week, the Supreme Court directed the banks to remit this amount, but the technicalities of the process are yet to be sorted. The apex court’s directive had stated that all accounts and the primary agricultural cooperative societies (PACSs) should be KYC-compliant. Subsequently, the RBI had also issued such guidelines, but operational difficulties in implementing the move had stalled the process. Ramesh Thorat, chairman of PDCCB, said the bank had written to NABARD, the supervisory body, on the issue, but nothing much has happened until now.

“During the board meeting, the matter was taken up for discussion. We decided not to go on a confrontational path as that would not have served any purpose. Instead, we will wait for NABARD to certify the accounts,” he said. In case the government fails to take concrete steps to accept the money till January 3, Thorat said they will be forced to seek legal recourse. Officials indicated that they may consider filing a contempt petition in the Supreme Court. PDCCB had seen deposits of Rs 600 crore in the first four days, which are yet to be changed by the currency chest banks.

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