Demonetisation: Odisha wants DCCB to be allowed to exchange notes

BHUBANESHWAR: Odisha, where paddy procurement has begun, is concerned the RBI’s decision to not allow District Central Cooperative Banks to accept or exchange old Rs 500 and Rs 1000 will hurt farmers.

Taking this up with the Prime Minister Narendra Modi, Chief Minister Naveen Patnaik – one of those opposition leaders who has welcome Modi’s “anti- black money drive” – has asked for this to be immediately remedied. Patnaik followed up phone conversation with the PM with a letter that his office shared with the media.

In a circular dated November 14 the RBI said DCCBs weren’t allowed to do any new business in old 500 and 1000 notes. Paddy procurement uses the DCCB network has begun in Odisha and the move, says Patnaik, could affect lakhs of farmers in Odisha.

Money will reach farmers’ accounts but won’t be in their hands. Until the Nov 14 notification these DCCBs had presumed, since they are licensed by RBI, they were allowed to take deposits of old notes and had been doing so. Further, more than two thirds of agriculture loan is disbursed through the affiliated Primary Agricultural Cooperative Societies (PACS) which service 44 lakh families under Kisan Credit Card scheme, Patnaik pointed out.

"Withdrawal of the facilities of implementation of a scheme meant for all the banks of the country will adversely affect the farmers in the peak of agricultural operations. This will result in setback of disbursement of crop loans during the current Rabi season leading to resource crunch for farmers,” wrote Patnaik. Already the shortage in new Rs 2000 notes and Rs 100 notes is leading to dislocation in payment of wages to agricultural labourers, he added.

Meanwhile the new "stone grey" Rs 500 notes have finally found their wat to Odisha's RBI office. A senior state official of the Bank told media it was not a great amount so they would start by distributing the notes from select chests of banks in Cuttack and Bhubaneshwar. The notes are expected to be available, over the counter at those branches, since the ATMs are yet to be re-calibrated by tomorrow afternoon.