Demonetisation is a historic event that would check the black money menace. But denial of currency exchange by co-operative banks has put Kerala into a real financial crisis. The cooperative banking system in Kerala holds more than ₹60,000 crore in deposits and has disbursed more than ₹30,000 crore in loans.
This sector has been paralysed because both the Reserve Bank of India and the Finance Ministry are suspicious of its dealings. Unlike in the case of nationalised and private banks, it’s not a question of long queues, but a total collapse.
The politics played by the CPM, Congress and BJP should not damage the co- operative sector in Kerala.
KA Solaman
Kerala
The Hindu Business Line
Nov 18, 2016
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