Can cooperative banks accept demonetised notes? SC asks Centre

New Delhi: The Supreme Court on Friday sought the Centre's response on several issues arising since demonetisation.

The SC asked if the district cooperatives banks can be allowed to accept deposits with specific conditions and can there be a minimum assured withdrawal from banks.

The apex court bench, headed by Chief Justice TS Thakur, directed Attorney General Mukul Rohatgi to gather information and update it about the government's stand on the issues including the ban on district cooperative banks from accepting deposits in scrapped currency notes of Rs 500 and Rs 1,000 currency notes.

The bench, which also comprised Justice AM Khanwilkar and Justice DY Chandrachud, also asked even when the minimum weekly withdrawal limit has been set, then why people are not able to get that amount.

"If we can consider that this is going to be the minimum assured weekly withdrawal amount that a person can withdraw from the bank," the bench asked and also fixed December 14 for hearing of other petitions in the matter.

The bench also suggested to frame other legal questions which need to be discussed in the next hearing.

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Rohatgi urged the SC to stay all the cases in various High Courts on demonetisation. The apex court assured that this issue would be taken up on next date of hearing.

Earlier on December 2, the SC had asked the Centre to inform about the steps taken to curb sufferings and inconvenience to the people in rural areas.

After hearing pleas against the various aspects of demonetisation, the court had directed all parties to sit together and prepare a list of cases that can be forwarded to high courts and those that could be referred to the apex court.

The AG stated that the government was fully aware of the situation in cooperative banks which don't have appropriate infrastructure and mechanism as compared to regular banks.