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Supreme Court questions discretion towards Cooperative Banks

  • The court questioned the discretion towards cooperative banks
  • Chief Justice asked Attorney General to inform court on Union Government's stance on restrictions imposed on district cooperative banks
  • The bench said the government should have implemented methods to control cash flow and not demonetisation
Supreme Court  discretion towards Cooperative Banks

Supreme Court on Friday sought Centre's response on issues associated with demonetisation including minimum withdrawal limits and restrictions imposed on cooperative banks. Chief Justice asked Attorney General to appraise the court on government stance in the issue and why district cooperative banks are not allowed to accept demonetised currency notes. 

The division bench comprising Chief Justice T S Thakur, A M Khanwilkar and D Y Chandrachud said the people are not even getting the minimum amount they are allowed to withdraw. The bench also told Centre to make arrangements to accept currency subject to conditions. 

The government should have initiated methods to control the flow of money and not demonetisation. On what basis demonetisation policy was implemented? When did the government decide to implement this policy and was it a secret decision?, the court asked. 

The court also asked on what basis minimum withdrawal limit was fixed at ₹24, 000 and is this amount necessary to meet one's needs. 

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