Demonetisation: Pune urban cooperative banks body holds demo; slams RBI

Alleging RBI is "discriminating" against urban cooperative banks (UCBs) in matters related to exchange of defunct notes and supply of new currencies, an association representing members of such lenders today staged a demonstration and submitted a charter of demands.

Hundreds of office-bearers of the association and account holders of city-based UCBs, barred by the RBI from exchanging decommissioned Rs 500/1,000 notes and depositing old bills post-demonetisation, took part in the protest.

The demonstration was organised under the aegis of the Pune District Urban Cooperative Banks Association. Protesters later submitted a charter of demands to Collector. One of the demands included ensuring adequate supply of new currency notes to the co-operative banks.
 

The association threatened to shutdown these banks in the city if the demands are not met.

"Post-demonetisation of high-value denomination notes, cooperative banks are subjected to discriminatory treatment (by RBI) as adequate number of new currencies are not being provided to these banks, who have no cash.

"There are over 50 lakh account holders with urban cooperative banks in the district and they are the ones who are getting adversely affected by the decision," stated a release issued by the association.

If the RBI fails to supply adequate cash to these banks within the next eight days, they will call for an indefinite "bandh".

According to the association, after the November 8 note recall exercise, cooperative banks are facing huge cash crunch. "As a result, the office-bearers and employees of these banks have to face the ire of account holders," it said.

Maharashtra accounts for about a third of the 1,575 UCBs operating in the country.