This is due to confusion in interpreting the RBI guidelines. You can accept old notes only through deposit in any account and this is unlimited. The account should be that of depositing person. In case of govt agencies they were specifically declared as who can accpet old notes. Is the DLSA in the declared agencies list. IT is the Bank official who need to answer in case of error. Hence the bank official may hesitant. Is the court tells that all govt agencies should accept old notes. Let them be clear. Let the RBI clarify on this point.