Co-operative banks can collect demonetised currency after completing KYC: Centre to SC

Attorney General (AG), Mukul Rohatgi on Thursday submitted papers in the Supreme Court stating that the government would like to allow the district co-operative banks to collect demonetised currency and deposit it in Reserve Bank of India (RBI), but after completing their Know Your Customer (KYC) forms.

The Attorney General said that the Centre will issue notification about it within two days.

The Supreme Court bench headed by Chief Justice of India Tirath Singh Thakur said that the court will examine the matter.

The Chief Justice of India raised concerns on how some people were able to garner lakhs of cash that too as new currency given the current situation.

Responding to the apex court the Attorney General Rohatgi said that some Bank Managers are involved in the illegal change of demonetised currency and government is acting against the culprits allegedly involved in these kinds of activities.

Senior Supreme Court lawyer Kapil Sibal told the court that people are having a tough time and they did not get money as mandated by Union of India of Rs 24,000 per week.

Attorney General Rohatgi told the court that it had printed Rs. five lakh crores of new currency till date and the lower denomination currency notes were already in market before it.

"We were trying our best to sort out the inconveniences, if any, of the general public," he said.

Earlier on December 9, the apex court asked the Centre whether its decision to bring in demonetisation was taken in absolute secrecy while hearing a bunch of petitions questioning the Narendra Modi government's rationale behind the implementation of the policy.

Chief Justice of India Thakur had asked the government to see if something can be done.

"People are suffering, it is a serious problem." he had said then.

The Centre had submitted an affidavit last week on the demonetisation move in the Supreme Court, saying it is an attempt to unearth black money stashed over the last seven decades.

Attorney General Rohatgi said that the Centre had filed a reply in the Supreme Court in compliance with the top court's earlier order on the issue.

The Centre in its affidavit told the apex court that demonetisation is a step to reduce ratio of cash transactions, adding the objective is to unearth illegal parallel economy.

Attorney General Rohatgi had earlier filed a transfer petition before the Supreme Court seeking a stay on all pending pleas against demonetisation.

The apex court had on November 18 refused to put a stay on hearings in various High Courts and lower courts related to the demonetisation of Rs. 500 and Rs. 1,000 currency notes.