Kerala: Tragic tale of co-operative banks and desperate depositors

Thiruvananthapuram: The cooperative banks in the state bear witness to the tragedy that has overtaken them and their customers following demonetisation. The Chenkal Cooperative Bank in Neyyatinkara Assembly constituency had a transaction of Rs 65 lakh before demonetisation on November 7. But now its work has almost come to a standstill and its cash counter remains deserted. A depositor approached the bank on Thursday for withdrawing money for the marriage of his daughter.

As per the new RBI direction, the bank has to forward the application to the district cooperative bank along with the wedding card, letter from the Kalyanamandapam and the letter from the jewellery shop. Only Rs  2.5 lakh can be withdrawn, that too as cheque to the Kalyanamandapam and the shop. The depositor will not get cash to make other arrangements, bank president M.R. Simon told DC. Sarojini is another victim of the RBI curbs. She had deposited her weekly savings from the MNERG daily wage of Rs 240. She is the only earning member of the family as her husband, a cancer survivor, is unable to work. She could not withdraw more than Rs  2,000 per day though she needed more, she said.

The Ponvila Cooperative Bank near Neyyatinkara also faced a similar predicament. The bank is unable to provide the funds needed for anganvadi and ashraya schemes from the funds deposited by the LSGs in the bank, said Mr C. Rabi, bank president. The anganvadi runs the noon meal scheme and ashraya provides food to the poor. These will have to be stopped, Mr Rabi said. The bank had to suspend the Neethi medical store and Nanma stores as they had no money to procure medicines and provisions.