Odisha CM seeks Modi's intervention on RBI decision

Odisha Chief Minister Naveen Patnaik on Wednesday urged Prime Minister Narendra Modi to intervene and direct the Reserve Bank of India to review its decision not to allow District Central Cooperative Banks (DCCBs) to accept demonetised currency notes.

"Withdrawal of the facilities of implementation of a scheme meant for all the banks in the country will adversely affect the farmers in the peak of agricultural operations," said Patnaik in a letter to Modi.

He said the RBI's decision will result in a setback of disbursement of crop loans during the current Rabi season leading to resource crunch of farmers.

The RBI has taken a decision that no exchange or deposit facility of demonetised Rs 500 and Rs 1,000 notes will be allowed at DCCBs.

Patnaik said 44 lakh farmer families, who have taken agricultural loans, have been affected due to the ban imposed by the RBI on DCCBs.

Besides, paddy procurement will also be hit by the ban, he added.

"The DCCBs have been playing pivotal role in my state by dispensing crop loans to the extent of around 65 per cent through their affiliated Primary Agricultural Cooperative Societies (PACS) and catering to the requirement of around 44 lakh agricultural families under Kisan Credit Card Scheme," he added.

He said that since the DCCBs are licensed by the RBI and constitute part of the banking industry, it was construed that the DCCBs are also authorised to implement the scheme.

The whole situation is further complicated by the inadequate availability of new Rs 2,000 and Rs 100 denomination notes, said the Chief Minister.

--IANS

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