District Cooperative Banks to move Supreme Court against curbs

THIRUVANANTHAPURAM: District Cooperative Banks will approach the Supreme Court to challenge the curbs imposed by RBI on exchanging the demonetised currency notes of 500 and 1000 denominations. A meeting of the representatives of district cooperative banks chaired by cooperation minister A.C. Moideen, decided to seek legal options to overcome the present crisis affecting cooperative sector. “Meeting reached a consensus that all steps including legal option should be explored to protect the cooperative sector,” he said. He said many programmes including those in which the Centre gives subsidy to farmers, had been affected.

DCBs also decided to issue cards to depositors which could be used for purchasing commodities in Horticorp, Consumerfed and Supplyco. The minister said most district cooperative bank representatives supported the suggestion of cards. Since all primary banks have deposits in district cooperative banks, the cards issued by the DCB could be used in the government agencies. Mr Moideen said the government would hold discussions with the private establishments including jewellers and private hospitals to explore the possibility of extending the card facility in such establishments. The Cabinet will take a decision after examining all these proposals, he said.

The minister said after the purchase is made using the cards issued by District Cooperative Banks, these banks would make the payment to the agencies concerned. Mr Moideen said the RBI curbs had pushed the cooperative sector into huge crisis. About 40 per cent of the loans given to the Kudumbasree Self Help groups are from cooperative sector and if the problem continues it could lead to starvation deaths. He said the BJP should understand that cooperative sector is not related to banking transactions alone. These institutions play a major role in setting up consumer stores, dialysis facilities, diagnostic laboratories and other socially relevant support systems.