Minister of state for agriculture and marketing in Maharashtra government has said cooperative banks have lost credibility due to alleged mismanagement of funds. As these have been facing serious allegations of illegal transactions over the last several years, they have been barred from exchanging or depositing old currency bills, said the minister.
The RBI had earlier issued a circular restricting the DCCBs from exchanging or depositing old currency notes.
The minister said DCCBs with the elected boards have incurred heavy losses due to mismanagement of funds and such debt-ridden banks have turned defunct.