Co-op crisis: Ker CM, ministers to stage dharna before RBI

With Kerala's co-operative sector coming to a standstill due to the currency crisis, Chief Minister Pinarayi Vijayan along with his ministers will stage a dharna before the Reserve Bank of India office here tomorrow, demanding steps for its protection.
Announcing the decision at a hurriedly convened press meet, Vijayan said this was the first step of the agitation against the Centre's decision to not consider the co-operative sector on par with other banks to carry out exchange of demonetised notes of Rs 1000 and Rs 500.
"The decision is to hold a satyagraha in front of the RBI here from 10 am till evening along with other ministers," Vijayan said.

Congress-led UDF leaders, who met him earlier in the day, also echoed similar views that the Centre's decision would adversely impact the sector's functioning, he said.
Further agitational programmes would be discussed at the all party meet to be held here on November 21, he said adding that the agitation "is to express Kerala's sentiments on the issue."
On UDF's plea for convening a special session of the state assembly, Vijayan said all these matters would be considered during the all-party meet.

Earlier in the day during cabinet briefing, Vijayan said there was a 'political conspiracy' to destroy the co-operative sector under the garb of demonetisation. He also dismissed as "absurd", the statement of some BJP leaders that co-operative sector in the state was a "storehouse" of black money.

Keeping aside political differences, the UDF Opposition also expressed readiness to launch joint agitations with LDF to protect the sector and accused the Centre of trying to destroy the co-operative movement in the state.
The UDF is observing a 'black day' today on the issue.
UDF leaders met the chiefminister and urged him to call for an urgent session of the assembly to discuss the issue.
Meanwhile, BJP said the decision to hold a dharna before RBI by chief minister and his ministers was 'inappropriate' as the Centre was implementing "bold financial reforms".
BJP state chief Kummanam Rajasekharan, who met governor P Sathasivam, said he had apprised him of the situation.

Meanwhile, it was yet another day of never-ending queues in front of banks and ATMs for people of the state today.
The currency crisis has also made life difficult for workers in the plantation and construction sectors, which have come to a standstill.
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Meanwhile, Finance Minister T M Thomas Isaac said there would be a fall in revenue to the tune of Rs 2,000 crore this month due to slowdown in trade and other business after demonetisation.
He said the small-scale sector has come to a standstill and this would spread to the plantation sector in the coming days.

There was a fall in the sales turnover of lottery tickets to the tune of Rs 300 crore in the last one week due to the suspension of its sale following the present crisis, he said.
He also added that the currency crunch felt now in the state could have been averted if the co-operative sector were also given permission to exchange the old 1000 and 500 rupee notes with valid currency.
"As many as 6,213 bank branches are there in Kerala. District and primary co-operative institutions have 4,800 branches across the state. If these co-operative branches are also given the note exchange facility, the present crisis can be resolved smoothly," he said.

However, the Reserve Bank was not thinking this way, the minister said.
Terming the co-operative sector the backbone of the state's economy, Isaac said there are deposits to the tune of Rs 80,000 crore in the primary co-operative banks in Kerala.
Of the total deposits, only Rs 2,400 crore would be kept as cash by these banks. The remaining amount, after giving as credit, used to be deposited in district cooperative banks and in other commercial banks, he added.
The primary co-operatives can carry out banking transactions only if they are allowed to withdraw amounts from these banks.
"But, as per the Reserve Bank's directive, the co-operative banks could withdraw only Rs 24,000 from other banks. Then, how can we give money to the customers?," the minister asked.

Isaac also alleged that the objective behind such a restriction was to disrupt the functioning of cooperative banks.