Bank customers can exchange and deposit Rs 500 and Rs 1000 notes in Urban and State cooperative banks, the Reserve Bank of India said on Tuesday.
The RBI said, “There were reports that some cooperative banks were not strictly adhering to the instructions issued in connection with the withdrawal of legal tender status of the existing Rs 500 and Rs 1000 bank notes (specified bank notes).”
In a direction to the banks, RBI says that they have “advised the Urban Cooperative Banks through its Regional Offices and the State Cooperative Banks through National Bank for Agricultural and Rural Development (NABARD) of the need to ensure strict compliance with the instructions issued with regard to exchange of specified bank notes as also deposit of such notes into the accounts of their customers.”
District Central Cooperative Banks (DCCBs), however, cannot participate in the exchanging of demonetised currency notes. Customers are only permitted to withdraw money from their account in these banks up to Rs 24,000 per week.