Note ban: Facility limited to district, urban cooperative banks in Kerala

KOZHIKODE: Confusion prevailed in the cooperative banking sector over exchanging demonetized currency. Though it was earlier informed that cooperative banks could tender new currencies like nationalized banks, the facility was available at district, urban banks only. But unaware of the new instruction, many people thronged cooperative banks due to the heavy rush at nationalized banks.

“Only district, urban level banks were being instructed to exchange money. The facility was restricted to account holders only. We got RBI instructions on Thursday morning,” said Kozhikode district cooperative bank deputy general manager, V.P Balan. Cooperative banks did not start an extra counter to clear the rush. Primary cooperative banks also received money from the account holder on the condition that it could be credited to their account after the receipt of the new currency.

“We accepted old 1000, 500 notes from our customers,” said an employee at Kathirur cooperative bank in Thalasserry. It is estimated that around Rs 90,000 crore is the investment in the state cooperative banking sector. According to officials, it will take time to get new currency at primary cooperative banks.