LDF to observe shutdown against demonetisation

Kerala's ruling LDF will observe a shutdown on Monday to denounce the demonetisation of high value currency which has left the cooperative banks in turmoil.

Left Democratic Front convenor Vaikom Viswan made the announcement in a statement.

"The state-wide shutdown will be from dawn to dusk," the statement said, adding it was also to protest against the "rash" conduct of Prime Minister Narendra Modi.

Modi reportedly declined to meet an all-party delegation led by Kerala Chief Minister Pinarayi Vijayan to brief him about the problems faced by the cooperative sector.

On November 8, the central government declared that Rs 500 and 1,000 notes would no more be legal tender.

Two days later, permission was withdrawn for the 1,600 odd primary cooperative societies from accepting or exchanging the spiked currencies, creating widespread resentment in Kerala.

The cooperative banking sector in Kerala is a three-tier system with about 1,600 primary cooperative banks attached to 14 district banks, which are further linked to the apex Kerala State Cooperative Bank (KSCB).

The total deposit in the cooperative banks, says Kerala Cooperation Minister A.C. Moideen, is around Rs 1.27 lakh crore.

--IANS

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