The Mumbai District Central Co-Operative Bank has approached the Bombay High Court, challenging the order of the Reserve Bank of India (RBI) disallowing co-operative banks from carrying out exchange of currency notes or deposits
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The Mumbai District Central Co-Operative Bank has approached the Bombay High Court, challenging the order of the Reserve Bank of India (RBI) disallowing co-operative banks from carrying out exchange of currency notes or deposits.
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The RBI order came soon after Prime Minister Narendra Modi on November 8 announced the decision to ban Rs 1,000 and Rs 500 notes.
Counsel for the bank Mustaffa Doctor told justice Abhay Oka and justice Anuja Prabhudesai that the bank has around 1 lakh accounts, including around 12,285 of co-operative housing societies, and the impugned circular issued by the RBI is arbitrary, discriminatory and illegal in nature.
“The bank has a licence to operate as per the Banking Regulation Act, 1949, and without any reason, the RBI has disallowed it from carrying out its function, which is illegal as per Article 14 of the Constitution,” Doctor contended.
Justice Oka has kept the matter for hearing on Monday and asked the petitioner to give a copy of the plea to the RBI.
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