Let co-operative banks exchange notes: Badal to FM Jaitley

CHANDIGARH: Punjab CM Parkash Singh Badal on Friday urged Union Finance Minister Arun Jaitley to direct the RBI to allow the District Central Cooperative Banks to participate in demonetisation scheme implementation.

In a letter to Jaitley, he solicited the Union Finance Minister’s attention towards a RBI circular stating that DCCBs are not allowed to accept specified bank notes as deposits and also not authorised to exchange the demonetised notes.

Badal said in view of non-repayment of agriculture loans due to non-acceptance of demonetised banknotes by DCCBs, farmers are unable to avail the agri-credit needed for sowing Rabi crop.

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On the other hand, the decision brought the business of cooperative banks to a standstill. He said several DCCB branches are operational in areas where there is no presence of other public or private sector banks and asked Jaitley to advice the RBI to allow DCCBs to be a part of the demonetisation scheme to give relief to the farmers.

Badal said the RBI notification which instructs withdrawal of legal tender character of old `500 and `1000 notes was followed by a corrigendum which clarifies ‘banks’ as defined under Banking Regulation Act, 1949 shall implement the demonetisation scheme.

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