SC terms cooperative crisis very 'grave'; urges centre to take note
Synopsis
The SC was hearing petitions by cooperative banks from Kerala. The restrictions on cooperatives were put in place as they did not have internet banking facility: Centre
Expressing concern over the ' grave crisis' in the cooperative sector, Supreme Court has directed the Central Government to take necessary steps to mitigate the misery of the public.
While hearing petitions filed by cooperative banks in Kerala, the apex court observed that the cooperatives are facing a grave crisis.
Meanwhile, the Centre explained that the cooperative banks in the state lacked adequate infrastructure. The restrictions on cooperatives were put in place as they did not have internet banking facility, it said.
The demonetization and the restrictions on transactions have left the primary cooperative banks in the state in disarray. Even though these banks were allowed to accept demonetized currency notes in the beginning
Last month, Kerala Chief Minister Pinarayi Vijayan and his cabinet colleagues had staged a sit-in in front of RBI regional office in Thiruvananthapuram alleging that the Centre was stifling the cooperatives.