Demonetisation has hit the nation pretty badly as people are still struggling to get their hands on some cash, especially in the remote areas of the country. Out of all the state, it seems Kerala has taken the worst hit. It is indeed sad to see that cooperating banks in Kerala are gasping for cash.

 

While, the rest of the India might get back on track in lesser time but Kerala will take a lot of time to do so. The cooperative banking system in Kerala holds ₹60,000 crore in deposits and has paid ₹30,000 crore in loans. This banking system has been paralysed as the Reserve Bank of India (RBI) and the Finance Ministry are suspicious of its dealings.

 

As a result of this suspicion, these cooperative banks throughout the state of Kerala are neither allowed to receive old 500 and 1000 rupee notes from the customers nor are they allowed receiving cash from RBI to continue daily operations.

 

Initially RBI had allowed the cooperative banks to exchange the 500 and 1000 rupee notes. But they feared that black money will be laundered and thus they withdrew their permission.

 

These cooperative banks have received unaccounted cash but not from the poor people as deposits for sure. At times, these banks in Kerala have been referred to as the Swiss banks of the state.

 

Because of this suspicion, the rural people, who have put their trust on these cooperative banks for more than a decade now, are suffering. CPM and Congress have requested the central government to address the issue right away as the people in the rural areas are facing a moment of severe crisis.