Exchange or deposit of old currency not allowed at Cooperative Banks: RBI

MUMBAI: The Reserve Bank of India today said that no exchange or deposit facility old denomination Rs 500 and Rs 1000 notes will be allowed at District Central Cooperative Banks. However the RBI clarified that DCCBs can allow existing customers to withdraw upto Rs 24,000 per week.

"No exchange facility against the specified bank notes (Rs 500 and Rs 1000) or deposit of such notes should be entertained by them (DCCBs)," RBI said in a statement.

The Reserve Bank has also advised all banks to permit withdrawal of cash by DCCBs from their accounts based on their need. The regulator also clarified that the cash withdrawal limit of Rs 24,000 per week was not applicable to withdrawal of cash by a DCCB from its account with any other bank.

The government on November 12 had said that it was looking into sudden 'popping up' of money into zero-balance Jan Dhan accounts, after an unprecedented Rs 3 lakh crore of cash flooded the banking system within four days of demonetisation of high value currency.

"We are getting some complaints that suddenly monies have popped up in the Jan Dhan accounts, so there is a misuse and that is why the rationing in initial days takes place," finance minister Arun Jaitley had said.