The Central Government order declaring second and fourth Saturday as public holiday for banks will adversely affect the functioning of the Primary Agricultural Cooperatives and Non-credit banks in the cooperative sector in Kerala, reports Indian Express.
Since the district cooperative banks are the financing banks of the Primary Agricultural cooperatives (PACS), their remaining closed on Saturday means that the PACS and non credit banks cannot either draw the amount to pay the customers in case of necessity or deposit the excess amount.
It has been mandatory for the PACS and non credit banks to deposit the amount exceeding the retention limit with its financing banks, the DCBs. If DCBs are closed, the secretary will have to pay the interest at the rate of 18 per cent as fine for the particular period.
In case of theft or burglary at the PACS and non credit banks, the insurance companies will not compensate for the amount exceeding the retention limit.
