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Demonetisation has become a bane for co-op societies

Demonetisation has become a bane for co-op societies

Mangalore Today News Network

Mangaluru, Nov 15, 2016: Speaking after inaugurating the 63rd All India Cooperative Week in the city on nov 14, Monday; Dakshina Kannada Cooperative Milk Producers’ Union Ltd (DKMUL), its president K Raviraj Hegde said, all co-operative societies functioning efficiently like nationalised banks and providing better service. 


Cooperative sector has been contributing significantly to economic development of villages. A total of 628 co-operative societies have been registered in Dakshina Kannada according to the Co-operative Societies Act 1959. Ninety-eight societies have been registered under Souharda Sahakari Act. 225 co-operative societies in the district have nine lakh members, he said. Taluk Industrial Co-operative Society President Arun Kumar Shetty presided over the programme.  CMC President Meenakshi Madhava Bannanje and Cooperative Societies’ Registrar Praveen B Nayak were present.  District Co-operative Union President Kishan Hegde Kolkebail said the cooperative banks have been facing problems following the scrapping of Rs 500 and Rs 1,000 notes as the societies are not recognised by the RBI.

The government should allow the co-operative societies to facilitate the exchange of notes. The problem is likely to be solved soon, he said and added that the government has plans to distribute RTCs in cooperative societies. Kolkebail said that the demonetisation had reduced the cash flow to cooperative societies. These societies could only remit cash to the commercial banks. Though customers were ready to repay their loans, accepting it had become a problem.

Kokkarne Surendranath Shetty, associate professor, MGM College, delivered a lecture on importance of cooperative societies. Arun Kumar Shetty, president of Udupi Taluk Industrial Cooperative Society; Meenakshi Bannanje, president, Udupi City Municipal Council; Amrita Krishnamurthy, municipal councillor; Praveen B. Nayak, Deputy Registrar of Cooperatives; and Vittal Sherigar, Deputy Director, Cooperatives Audit Department, were present.

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Comments on this Article
Jennifer D’souza, goa Tue, November-15-2016, 12:52
This is not a permanent problem . It will be just for time being.
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