Gujarat govt to Centre & RBI: Allow co-op banks to accept old notes

RBI has told us a decision on lifting the ban would be taken once the ongoing inquiry into these complaints got over,” said Deputy CM Nitin Patel

By: Express News Service | Gandhinagar | Published:November 17, 2016 5:21 am

The Gujarat government Wednesday urged the Centre as well as the RBI to lift the ban on District Central Cooperative Banks (DCCBs) from accepting or exchanging scrapped notes of Rs 500 and Rs 1,000. The appeal by the state government followed representations it received from different quarters about cash crunch being faced by people, especially farmers, in view of the abolition. Deputy CM Nitin Patel said RBI has barred DCCBs from accepting or exchanging defunct currency notes after receiving some complaints against them.

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“RBI has told us a decision on lifting the ban would be taken once the ongoing inquiry into these complaints got over,” Patel told mediapersons here while enumerating the “achievements” of Vijay Rupani government in Gujarat which has completed 100 days.

Last Sunday, the regulator e-mailed a circular to all the 18 Gujarat-based DCCBs, asking them not to accept and exchange the demonetised notes. “DCCBs mostly operate in rural areas. Many farmers are having accounts in these banks. Thus, we have urged RBI as well as the central government to conclude their inquiry as soon as possible and lift this restriction,” said Patel. To help farmers facing difficulties in purchasing fertilisers because of the cash crunch post-demonetisation, Patel said the state government has instructed PSUs to accept cheques from agriculturists.

With PTI Inputs