RBI check on cooperative banks may hit Gujarat BJP

GANDHINAGAR: As the state gears up for the 2017 elections, the brunt of demonetisation and successive restrictions on the District Cooperative Banks (DCB) put by the Reserve Bank of India (RBI) may hit the rural economy in a big way.

Chairman of The National Federation of State Cooperative Banks and senior BJP leader Dilip Sanghani maintained that fast resolution of issues and significant enhancement of the flow of cash currency particularly of smaller denominations to the farmers can tide over the possible adverse effects of the curbs on DCBs post demonetisationn of Rs 5,00 and Rs 1,000 notes.

Speaking to ET, Sanghani, alleged that the RBI has meted out prejudicial treatment towards the DCBs as against the Urban Cooperative Banks whereas not a single case of any irregularity has come to light from the DCBs.


“In a way the DCBs have been incapacitated by the RBI, which will majorly impact the development of the rural sector,” Sanghani said adding that there is a need for transparency and public discussions by the domain experts on demonetisation.

“So far, there are only political discussions on the subject, but we need economists and other professionals discussing the subject in a language that is understandable by common man,” he added.

The curb on the DCBs to exchange old currency has put cooperate banks across districts on the edge and it is the ruling BJP, which is more than likely to bear the political brunt of the exercise if any, in the assembly elections.