The Reserve Bank of India Wednesday told the Bombay High Court (HC) that it had transferred a sum of over Rs 1.58 crore to the Solapur District Cooperative Bank for disbursal of salaries for aided school teachers.
“We have sent the amount to the Solapur District Bank for disbursal of salaries to the teachers. If they (teachers) have accounts, they can withdraw upto Rs 24,000 by cheques per week. There is no impediment in cheque transaction. In case more cash is required, there is a mechanism at the district levels for the banks to get more money,” said RBI’s counsel Venkatesh Dhond.
The statement was made after a division bench of Justice A S Oka and Justice Anuja Prabhudessai had last week asked the RBI to consider the issue of payment of salaries to aided school teachers, as it is disbursed through district cooperative banks which have been prohibited from exchanging or depositing new currency notes following demonetisation.
Advocate V M Thorat, appearing for Solapur District Central Cooperative Bank, argued that an amount of over
Rs 1 crore would limit cash disbursal to every teacher to around Rs 900 per month with the state depositing Rs 95 crore in the district cooperative bank as salaries for the 17,000 teachers.
The Mumbai, Solapur, Nashik and Pune district central cooperative banks had earlier approached the High Court challenging the RBI circular of November 14, restricting them from exchanging or depositing old currency notes of Rs 500 and Rs 1,000, which were declared as illegal tender under the government’s demonetisation move on November 8.
Meanwhile, the Supreme Court is expected to hear a transfer petition Thursday, which was filed by the Centre seeking for all petitions pertaining to the demonetisation to be heard by SC itself or any HC. The HC has therefore posted this petition for further hearing on December 19.