Chennai: With operations in co-operative banks coming to a standstill due to demonetisation of Rs 500 and Rs 1,000 notes, the AIADMK on Wednesday demanded that the Union Government to release Rs 3,000 crore in new notes to such institutions and accept repayment of loans in “invalid” notes.
In a memorandum submitted to finance minister Arun Jaitely on the directions of Chief Minister J. Jayalalithaa, the AIADMK MPs said lending activity at Primary Agricultural Cooperative Credit Societies across the state has come to a standstill and apprehended that the situation if continues might “jeopardize” agricultural operations in the peak Rabi season.
“In all, Rs 3,000 crore in (new) currency may be made immediately available to the cooperatives in Tamil Nadu to meet the immediate crop loan disbursement needs during November and December 2016, in addition to the regular flow of currency on par with scheduled commercial banks,” the MPs said.
“Due to non-disbursal of loan to Primary Agricultural Cooperative Credit Societies (PACCS) from District Central Cooperative Banks (DCCBs), nearly 8 lakh farmers would be adversely affected as they were not able to draw cash needed for agricultural operations, “ the memorandum said.
The DCCBs must be permitted to accept deposits in KYC (Know Your Customer) compliant accounts on par scheduled commercial banks, and they should be allowed to disburse funds to PACCS without the Rs 24,000 per week restriction, it said.
