Ker CM asks RBI to change stand towards cooperative sector

Kerala Chief Minister Pinarayi Vijayan today asked Reserve Bank of India to change its stand towards state Cooperative sector in the wake of admission by the apex bank that there was no black money in the cooperatives.
Some quarters had unleashed wrong propaganda against the cooperative sector in the state but now the RBI itself has officially confirmed that there is no such black money deposits as a reply to an RTI, he said here.
In view of the development, the apex bank and NABARD should change its stand towards cooperative sector, he said after inaugurating the 'State Credit Seminar 2017-18' organised by NABARD.

Vijayan was apparently referring to RBI's decision not to allow primary cooperative societies and district cooperative banks to exchange old notes after demonetisation.
State government held that this approach of RBI had virtually brought the functioning of cooperatives to a standstill.
"Some quarters had unleashed wrong propaganda against the cooperative sector and even depicted it as the hub of black money," he said.

"It was heard that raids were carried out in its banks following this. Later, reports came up that black money was found there. But, to an RTI reply, RBI itself has nowmade it clear that there is no black money in cooperative banks," he said.

"The new development will give more strength to the Cooperative sector. But, the RBI and NABARD should be ready to change its wrong stand. Mistakes can happen to anyone... but they should be ready to rectify it if they have realised those mistakes," he said.
He also asked NABARD to take up the issue of state cooperatives with the RBI and make the apex bank realise the democratic system prevailing there.
However, Chief Minister said the NABARD had stood with the state cooperatives during the changed circumstances after the demonetisation of high value currency by the Centre.
Vijayan later released the 'State Focus Paper 2017-18' in the function.