Reduced credit flow from Coop Banks hit farmers: Rout

Replying to a question of Congress MLA Chiranjib Biswal, the Minister said cooperative banks are facing cash crunch after RBI's restriction on the exchange of demonetized Rs 500 and Rs 1,000 notes.

Published: 07th December 2016 11:28 PM  |   Last Updated: 07th December 2016 11:28 PM   |  A+A-

By Express News Service

BHUBANESWAR: As demonetisation has hugely impacted cooperative banks in the state credit lending
for rabi crops has almost come to a halt, said Cooperation Minister Damodar Rout in the Assembly today.

Replying to a question of Congress MLA Chiranjib Biswal, the Minister said cooperative banks are facing cash crunch after RBI's restriction on the exchange of demonetized Rs 500 and Rs 1,000 notes.

Stating that the effect of demonetisation has severely impacted the operation of the cooperative credit structures across the country, Rout said farmers are facing insurmountable problems to meet their input requirements for rabi crops as credit flow from cooperative banks has dwindled.

The Minister said that the Odisha State Cooperative Bank had requested for Rs 100 crore for refinancing to the cooperative credit structures. However, only Rs 10 crore have been released to the apex cooperative bank.

Though the RBI has recently made some relaxation in the transaction norm for the cooperative banks, the latter is still running short of cash. Though farmers are granted agriculture loans, they are not provided with the money due to lack of hard cash in the banks.

However, there is some improvement in the situation and efforts are on to restore normal functioning of these banks, he added.

Taking note of the difficulties faced by the people in the withdrawal of money from the cooperative banks, the Chief Minster had written to Prime Minister Narendra Modi and Union Finance Minister Arun Jaitley seeking their urgent intervention. Even the Reserve Bank of India was also urged in this regard, he said

The Minister said that 2076 out of 4345 cooperative societies are running with loss.

Stay up to date on all the latest Odisha news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp