TN CPI-M asks RBI to allow coop banks to accept scrapped notes

CPI-M state unit Secretary G Ramakrishnan today appealed to the RBI to cancel its recent circular, banning district Central Cooperative Banks from receiving scrapped Rs 500 and Rs 1,000 notes.
In a statement, he said the transactions of 4,474 primary agricultural cooperative banks, thousands of cooperative societies, urban cooperative banks were done trough the district central cooperative banks.
The RBI's ban had affected thousands of farmers for whom Rs.6,000 crore worth of farm loans, farm inputs,had to be disbursed through cooperative societies and PACBs.
Similarly, the functioning of various cooperative societies had been paralysed and the rural economy was deserted now, he claimed.

Taking into consideration, the "extra-ordinary" situation, which had affected the rural economy 'hard', the RBI should withdraw the cicular and allow the cocoperative banks to function like other banks, he added.