1. Cash crunch: Maharashtra co-operative banks slam commercial banks for crisis

Cash crunch: Maharashtra co-operative banks slam commercial banks for crisis

According to the Maharashtra Urban Coop Banks Federation Ltd, RBI had issued oral directions to commercial banks to supply notes to cooperative banks

By: | Pune | Updated: November 12, 2016 6:38 AM
woman The Federation chairman, Vidyadhar Anaskar, said all the cooperative banks had its money in the commercial banks but despite that the cooperative banks were being treated inappropriately by commercial banks.”

The Maharashtra Urban Coop Banks Federation Ltd has alleged that commercial banks were deliberately turning down cash transactions with the cooperative banks at the time of crisis because of which they would not be able to service their customers.

The Federation chairman, Vidyadhar Anaskar, said all the cooperative banks had its money in the commercial banks but despite that the cooperative banks were being treated inappropriately by commercial banks.”

Anaskar said the cooperative banks were entirely dependent on the commercial banks to provide the cash exchange facility to their customers. “The commercial banks allowed only R10,000 cash to the cooperative banks and were being treated as a normal account holder. This has created problems for the cooperative banks while providing services to customers who are being turned back as no new notes were available,” Anaskar said.

According to the federation, RBI had issued oral directions to commercial banks to supply notes to cooperative banks for their operations but commercial banks were demanding written RBI directions.

Anaskar said. “We would raise the issue with Reserve Bank of India and Indian Banks Association,” he added.

He said the RBI had issued a written clarification that the limit of transaction should not be applied to cooperative banks but the commercial banks were still not following it.

The Federation said it had received complaints from various cooperative banks.

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