In order to wriggle out of the financial crisis triggered by the Centre’s demonetisation drive, the Kozhikode district cooperative sector has evolved a mechanism to assist deposit holders of primary cooperative banks and cooperative societies.
Depositors will get the facility to use cheques and demand drafts of the Kozhikode District Cooperative Bank (KDC Bank) and employ digital modes including Real-Time Gross Settlement system (RTGS) and National Electronic Funds Transfer (NEFT) to settle bills at hospitals, weddings, jewellery showrooms, and retail spending.
Likewise, the KDC Bank will offer guarantee cheque credit limit up to Rs.500 to purchase at Consumerfed, Civil Supplies Corporation , Maveli Stores, and Horticorp to customers for their daily needs.
The modalities have been worked out by the cooperative banks and primary societies supported by the CPI (M)-led Left Democratic Front and the Congress-led United Democratic Front. “These are some of the temporary steps to ease the woes of thousands of customers till the cooperative sector gets remedial measures from court, ” KDC Bank president Manayath Chandran and Janata Dal (United) district president said here on Tuesday.
Merchants and the trading community in the district have wholeheartedly supported the endeavour. Cooperation Minister Kadakkampally Surendren will inaugurate a mass convention in this regard at the Nalanda auditorium here at 11 a.m. on December 1.
Account holders in primary cooperative societies can start an account at the district cooperative bank using the Know Your Customer (KYC ) norms, Mr. Chandran said.
Consumerfed Managing Director and CPI(M) leader M. Mehaboob said nearly 2.5 crore people, especially farmers, fishing community and vendors in the State, depend on the cooperative sector. Now businesses have come down by a quarter ever since the Reserve Bank of India (RBI) disallowed the cooperative societies to do banking transactions.
The KDC, with its 63 branches, regional branch of the State Cooperative Bank, and six urban banks have RBI licence to carry out banking activities had also been restricted from swapping the junked high denomination currency notes . “ The cooperative sector has no choice during this crisis. The formulae worked out with the merchants and traders has the backing of the State government and will be a relief to the banks customers, ” CPI (M) district secretariat member M. Bhaskaran said.
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