A delegation-led by National Cooperative Union of India (NCUI) has sought the government to allow district central cooperative banks (DCCBs) to accept demonetised notes towards exchange and deposits.
A memorandum in this regard was submitted by the National Federation of State Cooperative Banks Ltd (NAFSCOB) to Finance Minister Arun Jaitley yesterday. NAFSCOB was also part of the delegation.
“Union Finance Minister yesterday assured the delegation to talk to NABARD Chairman and RBI Governor on the issues concerning DCCBs which are affected by demonetisation,” NCUI said in a statement.
The delegation, which was led by NCUI President and Rajya Sabha MP Chandra Pal Singh Yadav, apprised the Minister that the demonetisation will cripple the growth of DCCBs, which are on the verge of closure.
Yadav informed Jaitely that while all other cooperative banks including urban cooperative banks have been permitted to exchange and deposit of specified bank notes (SBNs), the DCCBs have been denied this, which is highly discriminatory.
“DCCBs are complying all regulatory and statutory requirements and these are supervised and regulated by NABARD. As DCCBs have been denied to exchange and deposit SBNs, this is harming the interest of small and marginal farmers and other stakeholders who are major customers of DCCBs,” the statement said quoting Yadav.
Farmers, who have taken loans from the banks, are not able to repay it. They are unable to take fresh loan which is required for purchasing the agri-inputs, he said.