Cannot disclose details on release of new Rs 500 notes: RBI

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The Reserve Bank of India today informed the Madras High Court that it cannot disclose details regarding the release of new Rs 500 denomination currency to the banks for distribution due to security reasons.

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The submission was made by the counsel for RBI on a petition seeking a direction to the Registrar of Co-operative Societies to follow procedures laid down by RBI relating to demonetisation and permit cash withdrawal and exchange of old currencies in the societies.

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After recording the submission, the court posted the matter for further hearing to 28 November.

The High Court had on 16 November adjourned for today the hearing in the case after it sought to know from the RBI when new Rs 500 denomination currency would be made available in Tamil Nadu to ease the present cash crunch following demonetisation.

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RBI had then submitted that it faced practical difficulties in transporting currency in view of seizure of over Rs 500 crore by poll authorities in Tamil Nadu two days before the 16 May Assembly election in three constituencies.

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On permitting District Central Cooperative Banks to exchange the demonetised currencies, the counsel had submitted that “the decision to ban DCCBs from exchanging notes was made apprehending malpractices”.

(With inputs from PTI)

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