Money & Banking

RBI ban on DCCBs accepting demonetised notes irks farmers

| | Updated on: Nov 14, 2016

BJP leaders say demonetisation move to be against farmers

The Prime Minister Narendra Modi's demonetisation scheme received strong reactions from a section of his own party and farmer leaders in Gujarat after the Reserve Bank of India (RBI) refused District Central Cooperative Banks (DCCBs) to accept old 500 and 1000 currency bills towards exchange or deposit.

On Monday, RBI clarified that DCCBs can allow their existing customers to withdraw money from their accounts up to Rs 24,000 per week till November 24, 2016 as with the case with other commercial banks, but it refused the DCCBs to entertain exchange or deposit of the specified bank notes.

"This move will have adverse impact on farmers as a large number of them do not have accounts in any other bank. This move is like a crisis for them and will leave them without valid cash. This will stop all our work and so will lead to closure of all APMCs. We are planning to represent to the BJP chief and the government to roll back this decision of RBI," said Vitthal Radadiya, BJP MP from Porbandar.

"The entire transaction in the agriculture economy is based on cash right from fertilisers, seeds and selling of the produce. Such a move will leave farmers helpless and they will have resort to agitation against the government," said Radadiya, who is Chairman of Rajkot District Cooperative Bank and commands strong control over other farmer societies and cooperatives in Saurashtra region.

Radadiya was joined by former state agriculture minister and BJP leader Dilip Sanghani, who termed the step as discriminatory and against the interests of farmers. "This is injustice to farmers as they deal only in cash."

Gujarat, currently, has 18 district cooperative banks spread across the state.

Jumping into the fray, Patidar reservation agitation leader, Hardik Patel stated that the government has attempted to create a financial emergency in the country. "This is a harvest season. Nobody has sufficient cash to conduct trading transactions. Farmers and common man are unnecessarily troubled, while big fish have no trouble," Patel said in a statement. Patidar community represents a large farmer population and constitutes one of the largest vote bank for the BJP.

BJP's affiliate farmer organisation, Bhartiya Kisan Sangh (BKS) too raised serious objection on the RBI's move terming it discriminatory.

Published on January 15, 2018

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