Dharwad: The Karnataka Central Co-Operative Bank (KCC) has urged the Reserve Bank of India and the Union Finance Minister to allow the co-operative banks too to accept the banned old currency notes of high value from the farmers who want to repay their crop loans.
Speaking to media persons here on Thursday, KCC Bank President President I S Patil said the circular issued in this regard by the RBI banning the co-operative banks from accepting the old currency notes which have been demonetised, had come as a rude shock to the co-operative banks as well as to the farmers and had become a major impediment in clearing their loans within the stipulated time.
He said as many as 1.25 Lakh farmers had obtained medium term crop loan to the tune of Rs 335 Crore from KCC Bank under the zero percent interest scheme. The KCC Bank serves as the district central co-operative bank for Dharwad, Haveri and Gadag districts.
Now the bank has recovered Rs. 43 Crore and though many farmers are eager to repay their loans and avoid the burden of interest levied later. However, the circular issued by the RBI prohibiting the acceptance of demonetised notes is coming in the way of repayments, he added.
He said the co-operative banks were working as per the guidelines of the RBI, and they should be treated on par with the nationalised commercial banks, which would help farmers and the bank to a greater extent.