The central government has issued a notification stating banks and post offices in the country can now deposit the demonetized Rs 500 and Rs 1000 notes with the Reserve Bank of India until 20 July.
This measure will provide a big relief to cooperative banks in the country, especially district central cooperative banks, as the RBI had refused to accept the withdrawn currency on grounds that most of these banks were controlled by politicians and there would be instances of money laundering.
The government had put the last date of acceptance of the Rs 500 and Rs 1000 currencies on 31 December 2016. The notification said such specified bank notes may be deposited by such bank, post office or district central cooperative bank in any office of the Reserve Bank of India, within a period of 30 days from the commencement of these rules.
It further said that they should get the exchange value by credit to the account of such subject to the satisfaction of the RBI of the conditions specified. It also added that the RBI will accept deposits collected by any bank or post office by 30 December 2016 or by any district central cooperative bank from 10-14 November 2016 should be deposited within 30 days.
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