RBI says has no data on alleged scams at cooperative banks
RTI activist says government decision after demonetisation hit millions of farmers
The Reserve Bank of India (RBI) admitted that it does not have any data on alleged irregularities or scams in the exchange of demonetised currency notes of Rs500 and Rs1000 in state and district cooperative banks, a Right To Information (RTI) reply revealed yesterday.
Decision overturned
The Narendra Modi-led BJP government had overturned its decision to allow note exchange and handling of new currency in cooperative banks within six days of demonetisation, based on ‘unsubstantiated’ accusation of money laundering in these banks. Galgali says that this decision hit millions of farmers and the rural population whose only access to formalised banking continues to be through these The Reserve Bank of India yesterday hiked the daily ATM withdrawal limit from Rs4,500 (Dh243) to Rs10,000 and doubled the weekly current account withdrawal limit to Rs100,000 (Dh5,392).
The withdrawals from ATMs will be operative within the existing overall weekly limit of Rs24,000, a Reserve Bank of India communique said.
“On a review of limits placed on withdrawals from ATMs and current accounts, it has been decided to enhance the same with immediate effect,” the RBI said.
On December 31, the RBI relaxed the daily ATM withdrawal limit to Rs4,500 from the earlier cap of Rs2,500.
The enhanced current account withdrawal has been extended to overdraft and cash credit accounts, the RBI said. banks that have a network in the most remote part of the country.
Seeking facts on the ground reality of these accusations, the prominent RTI activist had sought data on the irregularities and scams detected in these cooperative banks across the country between November 8 and 14, 2016. Galgali asked the RBI to supply him the data on the corruption detected in the cooperative banks from the day RBI revoked its decision in allowing exchange of Rs500 and Rs1000 notes in cooperative banks with details of branch, state and action taken in each case.
“Public Information Officer of RBI, A G Ray, specifically replied that the information sought on District and Apex State Cooperative Banks is not available with him (that is RBI),” said Galgali.
Galgali has questioned as to “why the accusations were hurled at cooperative banks of underhand dealings in the exchange of currency notes in these banks, when RBI did not seem to have data of a single case anywhere in India.