Co-operative banks given 30 days time to deposit demonetised notes

Key Highlights: 

• On November 08, 2016, PM Narendra Modi banned high-denomination notes
• DCCBs were asked not to collect demonetised notes after November 14, 2016
• 86% of India's currency was banned by PM Narendra Modi

Ministry of Finance has given 30 days time to the district central co-operative banks (DCCB) for depositing scrapped notes of Rs 500 and Rs 1000 with the Reserve Bank of India (RBI).

In a Gazette notification, the ministry said, “Specified bank notes may be deposited by such bank namely post office or district central co-operative bank as the case may be in any office of the Reserve Bank of India within a period of 30 days from the commencement of these rules. “

It further added, "Get the exchange value thereby credit to the account of such bank, post office of district central co-operative bank as the case may be, subject to the satisfaction of RBI of the conditions specified in the said notification and the reason for non-deposit of the specified bank notes within the period under that notification.”

On November 14, 2016 the RBI had asked DCCBs to allow their existing customers to withdraw money from their accounts up to Rs 24,000 per week till November 26, but further suggested them not to entertain exchange or deposit of the specified bank notes.

DCCBs can now deposit the demonetised notes collected between November 08 - November 14, 2016 with the RBI within 30 days time period, said the notification.