Nearly 16 thousand cooperative credit societies are facing financial failure in the wake of demonetization. This has pushed them on the war path as they could not provide farmers with credit any longer.
The cash starved societies have threatened to go on a token strike early next month, reports Indian Express. Sources say the credit societies are being refused cash by district credit cooperative banks or nationalized banks.
It is the largest network of cooperative societies in Maharashtra in the financial sector and 2.20 crore farmers are its members who get loans for kharif and rabi crops every year.
Following demonetization, the Reserve Bank of India banned DCCBs from accepting and exchanging old scrapped notes of Rs 500 and Rs 1,000.
The credit societies also have deposits worth Rs 27,000 crore in their branches. Their deposits are yet to be exchanged with new currency notes, say a source.