District co-operative banks burdened with Rs 3,000-crore old notes

 

District co-operative banks in the state are worried as they are burdened with demonetised notes worth Rs 3,000 crore, officials said. The total amount stacked in all co-operative banks across the country is estimated at Rs 6,000 crore. While the banks are forced to give interest on the deposits to their customers, the growing liability would affect the co-operative sector, officials said. Before the kharif season, the district cooperative banks in Maharashtra fear that the crop loans to farmers could be affected in wake of their failure to get replacement of the demonetised notes.

A official commented: “The state government had already placed the facts before the Union finance ministry in Delhi. But the decision comes under the jurisdiction of the Reserve Bank of India.”

However, the banks should have got the old notes replaced through the RBI before March 30, 2017.

NCP president and former agriculture minister Sharad Pawar also highlighted the issue and urged the Central Government to provide a solution.”