Mumbai, Dec 30: Inflicting the banking fraternity with its circular missive, Reserve Bank of India on the concluding day of the demonetization drive have asked all the bankers to deposit accumulated specified bank notes on December 30 with Issue office of RBI on December 31 itself.
Terming it a logistical nightmare, cooperative bank officials on condition of anonymity, pointed out that some of their standalone branches located in the distant isolated locations run the risk of not able to cope up for unforeseen reasons.
In normal circumstances over the past few weeks, cooperative banks have been depositing SBNs with their nearest possible private or nationalised bank, who in turn deposited with RBI. However, this deadline could lead to a balance sheet disaster from an operational perspective for these banks if, for some last minute reason including the non-availability of space or using their discretion these private or public sector banks refuse to accept SBNs, sources said.
The 1579 cooperative banks with over 10,000 branches constitute close to 4% market share in the banking business mix of the country. These banks, particularly in far-flung locations, are heavily dependent on the local currency chests of public/private sector banks to deposit the SBNs.
The regular banking hours of cooperative banks and also of several private and public sector banks on working Saturday continue till 8 pm and hence such notes accumulated on Friday were often deposited on Monday under normal circumstances due to logistical reasons.
“All bank branches (other than those of DCCBs) who have accumulated SBNs as at the close of business on December 30, 2016, are required to deposit the same in any Issue Office of the Reserve Bank or a currency chest on December 31, 2016, itself. Banks maintaining currency chests may make necessary arrangements to facilitate the deposit of SBNs received through linked branches /other branches of banks /post offices. Reporting of the transactions in ICCOMS will be enabled beyond 9.00 PM till all the deposits are received and accounted for,” RBI circular said.