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Kerala Chief Minister seeks Modi’s intervention to resolve crisis faced by cooperative sector

Friday, Nov 25, 2016,11:19 IST By Metrovaartha A A A

Thiruvananthapuram | Kerala Chief Minister Pinarayi Vijayan today sought Prime Minister Narendra Modi’s immediate intervention to resolve the ‘crisis’ faced by the cooperative sector in the state post-demonetisation.

Vijayan, who last week staged a dharna in front of the RBI office over the issue, shot off a letter to Modi, stating that by not allowing old Rs 500 and Rs 1000 notes there was an impending danger of completely destroying the agricultural and rural credit operational environment, which will surely derail the NABARD operations in the state.

He also termed as ‘shocking’ the ‘denial’ of permission to an all-party delegation from the state to meet the Prime Minister.

“The difficulties impounded on the District Co-operative Banks has led to a grinding halt of the downstream and upstream cash flows from and to their primaries’, he said.
Vijayan, heading the CPIM-led LDF government, mentioned about the state Assembly special session that discussed the situation faced by the state following demonetisation of high denomination currency notes with special reference to the crisis faced by the co-operative sector in the state.

“The Assembly had authorised an all party delegation to meet you in person, convey our concerns and have a productive discussion in this regard to explore possibilities of finding solutions to the impasse,” he said.

“However, the turning down of our request to meet you in person has come as a real shock for all of us here,” he said.

The letter was to convey the concern on the issue and the anguish of about 19 million co-operators and all the legislators of the state, the Chief Minister said.
“I believe that you are keen to continue our dialogue until we resolve the issue and ensure the sustainability of the co-operatives of Kerala”, he said.

On the functioning of cooperatives, Vijayan said efforts have progressed to streamline a transparent and robust computerised systems for integrating the District Co-operative Banks operations through core banking solutions.

“Their operations have also been integrated with the apex bank. Most of them have their networks of ATMs which operate on RuPay Cards making them on par with any other Commercial Bank’, he said.

“I am also pleased to inform you that, the District Co-operative Banks have implemented the tax deductions at source from large depositors as warranted under the Income Tax,” he said.
The state unit of BJP had recently written to Finance Minister Arun Jaitley alleging that “serious type of tax evasion is taking place” in the cooperative institutions in the state.

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