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Lift ban on DCCBs over accepting old notes: Gujarat govt

The regulator e-mailed a circular to all the 18 Gujarat-based DCCBs, asking them not to accept and exchange the demonetised notes.

Lift ban on DCCBs over accepting old notes: Gujarat govt

Representational Image (Photo: Getty Images)

The Gujarat government on Wednesday urged the Centre as well as RBI
to lift the ban on District Central Cooperative Banks (DCCBs) from accepting or
exchanging scrapped notes of Rs 500 and Rs 1,000.

The appeal by the state government followed representations
it received from different quarters about cash crunch being faced by people,
especially farmers, in view of the abolition.

Deputy Chief Minister Nitin Patel said RBI has barred DCCBs
from accepting or exchanging defunct currency notes after receiving some complaints
against them.

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“RBI has told us a decision on lifting the ban would be
taken once the ongoing inquiry into these complaints got over,” Patel told
reporters here.

Last Sunday, the regulator e-mailed a circular to all the 18
Gujarat-based DCCBs, asking them not to accept and exchange the demonetised
notes.

“DCCBs mostly operate in rural areas. Many farmers are
having accounts in these banks. Thus, we have urged RBI as well as the central
government to conclude their inquiry as soon as possible and lift this
restriction,” said Patel.

To help farmers facing difficulties in purchasing
fertilisers because of the cash crunch post-demonetisation, Patel said the
state government has instructed PSUs to accept cheques from agriculturists.

These PSUs, which have plants in Gujarat, include Gujarat
State Fertilisers and Chemicals (GSFC), Gujarat Narmada Valley Fertilisers and
Chemicals (GNFC) and IFFCO.

“We have asked these PSUs to put in place a system
whereby farmers can buy fertilisers from their outlets by producing cheques if
they do not have enough cash. We have also urged these PSUs to allow
cooperative societies to procure fertilisers from them by paying in
cheques,” said Patel.

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