Banning DCCBs from accepting demonetised notes unjustified

Banning DCCBs from accepting demonetised notes unjustified: They are supervised by Nabard and regulated by the RBI...

Help cooperatives survive
This refers to the report “Banning DCCBs from accepting demonetized notes unjustified” (The Hindu Business Line, Analysis, December 6). The need of the hour is finding a solution to a problem that has arisen due to continued neglect of an institutional system which has been serving the semi-urban and rural areas of the country, with all constraints. 
Issues like politicization, inadequate skills or problems arising from the dual control of cooperatives by Centre and states should be set aside by judiciary, governments and cooperatives themselves for a short period. There is need for cooperation among these agencies in solving the immediate problems the clientele of cooperatives are facing today.
Several short-cuts are being tried by state governments and cooperatives which can only lead to more complications. The short-cuts include bypassing DCCBs by state cooperative bank (as in Kerala), diverting the business now being done by cooperatives to other agencies and taking the problems to courts which helps in postponing decision-making.
At this stage Centre should assert and empower state level task forces involving RBI, NABARD, banks and state governments to resolve the problems locally in a time bound manner.
M G Warrier, Mumbai


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