Co-operative banks to accept old notes

THIRUVANANTHAPURAM: The Reserve Bank of India has directed cooperative banks to accept Rs 500 and Rs 1000 scrapped by the centre. The RBI has directed to accept old notes as deposit and not to replace them. The cooperative banks were first not ready to accept the scrapped notes. They were also not ready to accept the notes as deposits also. Following that, the government approached the Reserve Bank.

There are primary co-operative banks with bank deposits of Rs 250-300 crore in the state. A cooperative bank in Kozhikode has the large investment of more than 1000 crore. The deposits in all cooperative banks will come close to one lakh crore. District cooperative banks are now under the Reserve Bank.

As the income tax had raided primary cooperative banks, deposits in these banks are insecure. The situation is such that anyone can get the list of investors from the bank. The interest towards cooperative banks have declined with the withdrawal of high denomination notes.