The Urban Co-operative banks of Maharashtra have accused the large state-run lenders, who own the maximum number currency chests, of not giving them enough cash. In the letter to the RBI, the Maharashtra State Cooperative Banks Federation Ltd said, “Commercial banks refused to provide currency support to our UCBs on November 10, 2016, treating us as ‘general customers’.”
“Later, in spite of issuance of circular by the RBI that the limit of Rs. 10,000 is applicable to general customers and not applicable to cash withdrawal from a bank account by one bank from another bank, these public sector banks refused to adhere to the request of UCBs,” it added.
Most of the 4,000 odd currency chests are owned by the State-run banks. The 1,579 cooperative banks with over 10,000 branches and close to 3,000 operative ATMs across the country that constitute close to 4 per cent market share in the banking business mix of the country. The Indian Banks’ Association (IBA) said things have been sorted out.
