Note ban: Supreme Court seeks response on Tamil Nadu based cooperative bank plea

Source – financialexpress.com

The Supreme Court on Tuesday sought response from the finance ministry, the Reserve Bank of India (RBI) and others on a petition filed by Villupuram District Central Cooperative Bank, seeking permission to deposit Rs 21.56 crore in demonetised Rs 500 and Rs 1,000 notes.

The Tamil Nadu-based co-op bank claimed that the amount was held by it as cash in hand at the close of business hour on November 8, 2016, the day the Prime Minister in a televised address to the nation had declared that high denomination notes of Rs 500 and Rs 1,000 will no longer be legal tender so as to curb black money and corruption. A bench led by Chief Justice J S Khehar, while issuing notice to the government, the RBI and the National Bank for Agricultural and Rural development, also tagged the petition with similar pleas pending before it.

Senior advocate CA Sundaram, appearing for the cooperative bank, said it could not deposit the entire stock of currency notes and sought parity with other banks.