Pune: Even after eight years since demonetization, ₹101.2 crore in old ₹500 and ₹1,000 currency notes remain stuck with eight district cooperative banks in Maharashtra. These banks had attempted to deposit the notes with the Reserve Bank of India (RBI) before the December 30, 2016, deadline but were asked to retain them due to a lack of storage space. Subsequently, the government barred further deposits, leaving the banks in a legal limbo.
The matter is currently pending in the Supreme Court, with a hearing expected in April 2025, according to Maharashtra State Cooperative Bank Chairman Vidhyadhar Anaskar, who addressed the media on March 31.
On November 8, 2016, the central government announced demonetization, instructing all banks to submit old currency notes to the RBI by December 30, 2016. Eight district cooperative banks in Maharashtra followed the directive and approached the RBI before the deadline. However, citing storage constraints, the RBI directed them to hold onto the cash temporarily.
Soon after, the government issued a notification prohibiting any further deposits of demonetized notes. As a result, the banks were left with ₹101 crore in unusable currency. They approached the Supreme Court seeking a resolution, while also requesting the central government to reconsider its stance.
A petition on the matter was previously filed in the Bombay High Court by Ramesh Potdar, demanding the exchange of old currency. Referring to that case, Anaskar expressed confidence that the RBI would eventually have to honor the deposits. The district banks have now requested the Supreme Court to expedite the case, with a hearing expected in April 2025.
Bank officials remain uncertain about whether to include these old notes in their financial statements. With the legal status of the funds unresolved, banks are struggling to determine whether to consider them as assets or liabilities in their accounting books.
The ₹101.2 crore in demonetized currency is distributed across eight district cooperative banks:
Kolhapur – ₹25.3 crore
Pune – ₹22.2 crore
Nashik – ₹21.3 crore
Sangli – ₹14.7 crore
Ahilyanagar – ₹11.7 crore
Nagpur – ₹5 crore
Wardha – ₹78 lakh
Amravati – ₹11 lakh
With the Supreme Court set to review the case in April 2025, the district cooperative banks await a final decision that could determine the fate of the ₹101 crore stuck in their possession.
