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Naveen writes to Modi to allow DCCBs to implement demonetisation scheme

demonetisation DCCBs

Bhubaneswar: Chief Minister Naveen Patnaik has again communicated to the Centre to ensure smooth implementation of demonetisation through a letter to Prime Minister Modi on Wednesday. While his last letter on Monday requested intervention of Finance Ministry to make distribution of government allowances hassle free, today Patnaik requested RBI to authorize District Central Co-operative Banks (DCCBs) to exchange old currency notes of Rs 500 and Rs 1000 and take deposits of these notes from customers or it would have an adverse effect on paddy procurement in the state.

The CM said it was interpreted that the DCCBs, being licensed by the RBI, had the authorization to accept the exchange and deposit of the Specified Bank Notes (SBN) by customers. But as per an RBI circular dated November 14, the DCCBs are not allowed the above transactions thus leading to difficulties for farmers.

“In a Corrigendum in the matter of withdrawal of Legal Tender Character of existing Rs 500 and Rs 1000 Bank Notes wherein it has been clarified that the Banks as defined under Banking Regulation Act shall implement the Scheme. Since the DCCBs are licensed by RBI and constitute a part of the Banking Industry, it was construed that the DCCBs are also authorized to implement the Scheme,” the CM’s letter stated.

CM Patnaik has also mentioned that the DCCBs were accepting the demonetised notes from November 10 to 14. Since the DCCBs play ‘a pivotal role’ in Odisha in dispensing crop loans to the extent of 65% through their affiliated Primary Agricultural Co-operative Societies (PACS) and cater to around 44 lakh agricultural families under Kisan Credit Card scheme, Patnaik said withdrawal of the authorization to implement the demonetisation Scheme will affect the farmers in the peak of agricultural operations.

“It will result in set back of disbursement of crop loans during the current Rabi season leading to resource crunch for farmers,” wrote Patnaik. These banks play a major role in paddy procurement operations which will be disrupted affecting lakhs of farmers, he stated.

“This is further complicated by the non availability of adequate currency of new Rs 2000 and Rs 100 denomination to meet the demand of farmers. This has resulted in dislocation in payment of wages to agricultural labourers,” said Patnaik. He requested PM Modi to personally intervene in the matter and reassured that his government stands committed to any anti-corruption measure.

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