RBI’s decision not to allow District Co-operative Banks (DCCBs) to participate in the exchange of demonetized currencies has angered cooperators connected with the sector. Dileepbhai Sanghani Chairman of the apex body of co-op banks NAFSCOB is rushing to Delhi Tuesday to meet Finance Minister Arun Jaitley to apprise him of miseries being caused by this decision of the apex bank, he told this correspondent on phone from Amreli.
Earlier, RBI clarified District Central Cooperative Banks (DCCBs) could allow their existing customers to withdraw money from their accounts up to Rs 24,000 per week up to November 24, 2016. However, no exchange facility against the specified bank notes (Rs 500 and Rs 1000) or deposit of such notes should be entertained by them.
Sanghani who earlier wrote a letter to FM Jaitley said “RBI should withdraw the decision as it is mostly the farmers who have their bank accounts in DCCBs. This decision is against the interest of farmers and is a gross injustice to them as they mostly deal in cash. The practice will take a while to change, he added.
Sanghani had been in the cabinet of Narendra Modi when the latter was the Chief Minister of Gujarat and this has led to optimism among cooperators that he may convince the govt on the issue. His meeting Jaitley assumes importance against this background, said several cooperators to Indian Cooperative.
In fact, his election to the top job of NAFSCOB was partly due to his proximity to the present dispensation. There are thousands of DCCBs spread across the country with 18 being in Gujarat alone.
Meanwhile, with regard to DCCBs Reserve Bank has also advised all banks to permit withdrawal of cash by DCCBs from their accounts based on their needs. The regulator also clarified that the cash withdrawal limit of Rs 24,000 per week was not applicable to withdrawal of cash by a DCCB from its account with any other bank.
