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Legal : Vol 32 Ex 1 at 115 wpm (English)
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Learned counsel for the District Cooperative Banks, however, submitted that the Reserve Bank of India must assure that the entire an amount offered by the District Cooperative Banks for exchange after due verification in the form of demonetized notes, will be duly replaced by commensurate amount of legal tender notes contemporaneously. The learned Attorney General on instructions submitted that the policy of replacement of legal tender notes as applicable to Public Sector Banks and other Banks will be applied even in the case of District Cooperative Banks for exchange of demonetized currency with the legal tender currency. We accept the assurance given by the learned Attorney General In this behalf, The other broad point was about extending the time limit for exemption for use of demonetized currency notes of Rs.500/- and Rs. 1000/- at specified counters as per the relevant Notifications issued in that behalf by the Reserve Bank of India. It was contended that the exemption period provided in the concerned notification is expiring. Hence, it will not be possible to deposit the demonetized notes at specified counters thereafter, even in case of emergency situation like hospitalization, travel by Railway or Air etc. In our opinion, whether the exemption period should be extended or not must be best left to the judgment of the Government of the day with a hope that the Government will be responsive and sensitive to the problems encountered by the common man. Accordingly, we decline to Issue any interim direction to the Government in the matter of extending the period of exemption and leave it open to the Government to take appropriate decision in that behalf, as may be advised. The other serious grievance made by the petitioners is about the denial of right to withdraw the prescribed amount of Rs. 24,000/- per week per account holder, in spite of Notification Issued by the Reserve Bank of India permitting such withdrawal. It was submitted that If the Government has issued such Notification after due consideration, it is obliged to ensure that its commitment made under the said Notification is Implemented without any exception. The ground reality, however, contends learned counsel, is that the Banks are refusing to pay full amount of Rs. 24,000/- per account holder per week on the ground of non-availability of enough volume of legal tender currency. According to the learned Attorney General, the Government has already made It amply clear that it would take around 50 days time to streamline the cash flow. That period is still not exhausted. He submits that as of now the Reserve Bank of India has been able to infuse around Rs. 5,00,000/- of the new legal tender notes in the form of Rs.500/- and Rs. 2,000/-. That is almost over 40% of the amount of demonetized notes already deposited with the Banks. Further, the Authorities are working to the best of their ability to defuse the crisis of cash flow situation by printing new notes.
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