RTI reveals Bank with Amit Shah as a director collected highest amount of banned notes

RTI reveals Bank with Amit Shah as a director collected highest amount of banned notes

After 15 months BJP government told that RBI has received 99% of banned currency notes.
BJP government had announced that Rs 15.28 Lakh crore or 99 per cent of the canceled notes worth Rs 15.44 lakh crore were returned to the RBI treasury.

Manoranjan S. Roy, the RTI activist told to media that “The amount of deposits made in the State Cooperative Banks (SCBs) and District Central Cooperative Banks (DCCBs)  revealed under RTI for first time since demonetization  are astounding,”

Roy said it was a serious matter if only a few banks and their branches and a handful post offices, apart from SCBs and DCCBs, accounted for over half the old currency notes.

“At this rate, serious questions arise about the actual collection of spiked notes through the remaining 14 mega-PSBs, besides rural-urban banks, private banks (like ICICI, HDFC and others), local cooperatives, Jankalyan Banks and credit cooperatives and other entities with banking licenses, the figures of which are not made available under RTI,” he said.
The prime minister during his demonetization speech had said that Rs 500 and Rs 1,000 notes could be deposited in bank or post office accounts from November 10 till close of banking hours on December 30, 2016, without any limit. “Thus you will have 50 days to deposit your notes and there is no need for panic,” he had said.
The SCBs were allowed to exchange or take deposits of banned notes till December 30, 2016 — for a little over seven weeks, in contrast to district cooperative banks which were allowed only five days of transactions.
After an uproar, mostly from BJP allies, the government also opened a small window in mid-2017, during the presidential elections, allowing the 32 SCBs and 370 DCCBs — largely owned, managed or controlled by politicians of various parties  to deposit their stocks of the spiked notes with the RBI. The move was strongly criticized by the Congress and other major Opposition parties.
The RTI information was given by the Chief General Manager and Appellate Authority, S. Saravanavel, of the National Bank for Agriculture & Rural Development (NABARD).

It has also come to light, through the RTI queries, that only seven public sector banks (PSBs), 32 SCBs, 370 DCCBs, and a little over three-dozen post offices across India collected Rs 7.91 lakh crore — more than half (52 per cent) of the total amount of old currencies of Rs 15.28 lakh crore deposited with the RBI.

The break-up of Rs 7.91 lakh crore mentioned in the RTI replies shows that the value of banned notes deposited with the RBI by the seven PSBs was Rs 7.57 lakh crore, the 32 SCBs gave in Rs 6,407 crore and the 370 DCCBs brought in Rs 22,271 crore.

Old notes deposited by 39 post offices were worth Rs 4,408 crore.

All the district cooperative banks were banned from accepting deposits of the banned currency notes from the public after November 14, 2016  five days after demonetisation  on fears that black money would be laundered through this route.

The Ahmedabad District Cooperative Bank (ADCB) secured deposits of Rs 745.59 crore of the spiked notes in just five days after Prime Minister Narendra Modi made the demonetisation announcement.

ADCB’s total deposits on March 31, 2017, were Rs 5,050 crore and its net profit for 2016-17 was Rs 14.31 crore. According to the bank’s website, Amit Shah continues to be a director with the bank and has been in that position for several years. He was also the bank’s chairman in 2000.

Right behind ADCB, is the Rajkot District Cooperative Bank, whose chairman Jayeshbhai Vitthalbhai Radadiya is a cabinet minister in Gujarat BJP government  It got deposits of old currencies worth Rs 693.19 crore.

Ahmadabad-Rajkot DCCBs are much higher than the apex Gujarat State Cooperative Bank Ltd, which got deposits of a mere Rs 1.11 crore.

Among the SCBs, the Maharashtra State Cooperative Bank topped the list of depositors with Rs 1,128 crore from 55 branches and the smallest share of Rs 5.94 crore came from just five branches of Jharkhand State Cooperative Bank, according to the replies.
Surprisingly, the Andaman & Nicobar State Cooperative Bank’s share (from 29 branches) was Rs 85.76 crore.
While Maharashtra has a population of 12 crore, Jharkhand’s population is 3.6 crore. Andaman & Nicobar Islands have less than four lakh residents.

Of the total 21 PSBs, State Bank of India, Bank of Baroda, Bank of Maharashtra, Central Bank of India, Dena Bank, Indian Overseas Bank, Punjab & Sindh Bank, Vijaya Bank, Andhra Bank, Syndicate Bank, UCO Bank, United Bank of India, Oriental Bank of Commerce, and IDBI Bank (14 banks) — with over 63,500 branches amongst them — did not give any information on deposits.

Reality views by sm -

In reality it was not the currency note ban it was the program to exchange bank notes and turned them into white money, this is reason RBI received 99% of old banned currency notes.

Demonetization failed and India got nothing out of it.

Today now people are saving black money in Rs. 2000 notes. India does not need more than Currency note of Rs. 200 or 100.

More value currency note has only one purpose to encourage creation of black money.


CBI needs to investigate how and when or who deposited banned notes in small banks under the Supreme court judge monitoring.


Friday, June 22, 2018

Tags – Note Ban Demonetization Banks