Mrudula Narale
Pune, April 1, 2025— The Pune District Central Cooperative Bank (PDCCB) has filed a petition in the Supreme Court against the Reserve Bank of India’s (RBI) refusal to accept ₹22 crore worth of old demonetized currency notes. The RBI has cited storage constraints as the reason for rejecting the currency, a decision that has left the bank and its depositors in financial distress.
The dispute stems from the RBI’s rejection of the bank’s request to deposit the demonetized notes, claiming insufficient storage space. Notably, PDCCB has been pursuing the matter with RBI since 2016. The bank maintains that this refusal has caused significant financial losses, particularly affecting farmers, small traders, and rural account holders who rely on cooperative banks for their financial needs. These depositors have been deprived of not only their principal amount but also years of potential interest due to the prolonged delay.
PDCCB President Digambar Durgade, while speaking to NewsDotz, expressed frustration over the central bank’s stance. He questioned why cooperative banks are being treated differently from nationalized banks, which were permitted to exchange old notes after demonetization.
The case has raised broader concerns about the RBI’s post-demonetization policies and whether they disproportionately impact smaller financial institutions. Cooperative banking sector experts suggest the Supreme Court’s ruling could set a precedent for other cooperative banks facing similar issues. They further questioned whether the RBI’s storage excuse masks deeper systemic biases against cooperative banks. “Either the RBI must accept these notes or clearly state that the money is no longer valid – leaving depositors in limbo is unjust,” experts added.