The Kerala High Court on Monday adjourned to November 16 the hearing on a writ petition seeking a directive to the Reserve Bank of India (RBI) to provide primary cooperative banks with new currency and sufficient valid notes to replace the demonetised ones.
The petition was filed by N.K. Joseph, president of the Kallettumkara Service Co-operative Bank in Thrissur.
According to the petitioner, the RBI had excluded the primary cooperative banks from the list of banks empowered to receive demonetised notes and replace them.
In fact, the district and State cooperative banks were allowed to undertake such transactions. The petitioner’s bank, therefore, was equally entitled to do the business.
The petitioner pointed out that the RBI had allowed the primary cooperative societies to engage in banking activities by receiving deposits from its members and providing loans for agricultural activities. In fact, the petitioner bank was allowed to use the word “bank” in its name. The petitioner’s bank had even issued cheque books which were valid instruments within the parameters of the Negotiable Instruments Act. The provisions of the Banking Regulation Act had been made applicable to the primary cooperative banks as well. The petitioner also pointed out that under the scheme of the Reserve Bank of India, the Prime Minister did not have any power to make an announcement regarding currency-related matters as they were always left to the RBI.
The petitioner contended that cooperative societies in the country were catering to the needs of 40 per cent of the population. In fact, it was small-time agriculturists and daily wage earners who were having accounts with the cooperative societies.
As a result of the action of the RBI, these account holders were now unable to withdraw or get the demonetised currency in their possession exchanged with valid ones.
