There were reports that some cooperative banks were not strictly adhering to the instructions issued in connection with the withdrawal of legal tender status of the existing ₹ 500 and ₹ 1000 bank notes (specified bank notes). The Reserve Bank of India today informed that it has advised the Urban Cooperative Banks through its Regional Offices and the State Cooperative Banks through National Bank for Agricultural and Rural Development (NABARD) of the need to ensure strict compliance with the instructions issued with regard to exchange of specified bank notes as also deposit of such notes into the accounts of their customers.

Alpana Killawala

Principal Adviser

Withdrawal of legal tender: banks must ensure strict compliance with exchange and deposit procedures for affected notes. Withdrawal of legal tender status of specified bank notes required cooperative banks to facilitate exchange and accept deposits of those notes, and regulatory advisories instructed urban and state cooperative banks through appropriate supervisory channels to ensure strict compliance with the prescribed exchange and deposit procedures.