Hyderabad: The Hyderabad High Court on Friday asked RBI to explain by Dece-mber 14 its stand on all-owing farmers to repay their agricultural loans by using old denomination notes of Rs 500 and Rs 1000 in Primary Agriculture Cooperative Societies (PACS) in their villages.
A division bench comprising Acting Chief Justice Ramesh Ranganathan and Justice A. Shankar Narayana, while hearing a petition by Boda Mangiah and seven farmers of Krishna district, said, “It is time for the RBI to take a call on the issue of facilitating the farmers to clear their agricultural loans, which they have taken from PACS, before the end of December, so that they can seek a loan for the coming rabi (winter) season.”
The petitioners told the court that the PACS and even the District Cooperative Central Bank to which these PACS are affiliated are not allowed to take money in old denomination notes of Rs 500 and Rs 1000.
They brought to the notice of the court that they have some old savings in their homes and old currency notes are not useful to repay the agricultural loans.
Mr D. Prakash Reddy, senior counsel appearing for the RBI, said that the government has not recognised PACS as one of the windows which can receive the de-notified currency.
Reacting to the submission of the senior counsel, the bench said that this is a serious problem which will affect agricultural activity.
The bench made it clear that the farmers have to be shown a way to clear agricultural loans before the end of December.
Counsel for the petitioners urged the court to allow the PACS to collect money from farmers in old notes and deposit the same in the account of respective DCCBs (district co-operative central banks) or AP Cooperative Central Bank.
