RBI said Axis Bank should explain its refusal to accept notes which were demonetised in December 2016.
New Delhi News in Hindi: A year and a half after validating the central government's November 8, 2016 decision to demonetise Rs 1,000 and Rs 500 notes, the Supreme Court is considering a petition by a company which complained that Axis Bank had violated RBI guidelines. It had refused to accept demonetised notes worth Rs 3.2 crore in violation of the Indian Penal Code.
Advocate Nalin Kohli, appearing on behalf of the company, argued before the bench of Justice BR Gavai and Justice KV Vishwanathan that he was not challenging the decision of demonetizing some currency notes, but the arbitrary decision of the bank. Aggrieved by the decision, deposits of Rs 3.2 crore were not accepted despite KYC compliance by the company in violation of RBI orders related to demonetisation.
RBI, through senior advocate Jaideep Gupta, said Axis Bank should explain its refusal to accept the notes which were demonetised in December 2016.
In a notification dated November 8, 2016, permission was given to deposit demonetised currency notes in banks till December 30, 2016. In another notification issued on December 31, 2016, possession of demonetised notes after December 30, 2016 will be considered a crime and the holder will be made liable to punishment.
Kohli said that the bank is obliged to receive the discontinued notes tendered before it by a KYC-compliant company, adding that it is also mandatory for the RBI to ensure that the company receives the amount in lieu of discontinued notes. Received, because each discontinued note contains a written promise by the RBI Governor to pay the holder the same amount of money on the currency note. RBI counsel said the bench issued a fresh notice to Axis Bank and asked it to respond within three weeks. The court will have to hear the bank and find out whether it had any valid reason for not accepting the demonetised notes or not. A bench of Justices S Abdul Nazeer, Gavai, A S Bopanna, V Ramasubramaniam and B V Nagarathna on January 2, 2023, by a majority of four to one, legalized the decision to demonetise the notes made through an ordinance on November 8, 2016. Was appointed.
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