These banks and post offices can now deposit these with the Reserve Bank of India (RBI) after furnishing reasons for the delay. The demonetisation was announced on November 8 night and the DCCBs were barred from accepting the old notes after November 14.
In a notification published on Tuesday, the ministry of finance said that banks and other entities such as post offices that had collected the old Rs 500 notes and Rs 1,000 notes during demonetisation have less than a month to deposit them with the Reserve Bank of India. The concern was that these banks, being politically connected, might be used for laundering black money. The central bank is yet to release the data on how much of the banned currency was deposited with the banking system. States like Kerala, Andhra Pradesh and Maharashtra, where cooperative banks are actively involved with providing credit to farmers, have since been asking the Centre to relax certain norms to help the farm sector.More news: Irish, British PMs to meet to talk Brexit, Northern Ireland crisis
Initial estimates say that around Rs 5,771 crore are lying with 32 coop banks in Maharashtra. The reason, the banks say, is that almost six months after demonetisation, they still have crores of cash in old currency, which the Reserve Bank of India (RBI) is refusing to accept. However, in case of NRIs living overseas, the RBI revealed that they would be given time till June 30, 2017 to exchange notes up to Rs 25,000.
Prime Minister Narendra Modi announced a shock move on November 8 past year to drain old Rs 500 and Rs 1,000 rupee notes - worth a combined United States dollars 256 billion (Rs 16,540 billion). Circulation of banknotes has increased to 90.27 billion pieces from 64.58 billion over the last five years.
As on November 8, 2016, the total amount of currency in circulation was Rs 17.7 lakh crore, which included specified bank notes (SBNs) of Rs 500 and Rs 1,000. The party had last week demanded that the over Rs 2,270 crore lying with the DCCBs be accepted by the Reserve Bank of India (RBI).