Black Money – Domestic and International Efforts

Demonetisation: Distress messages go out from cooperative banks in rural India

  1. What: Operations at 370 district central cooperative banks (DCCBs) and over 93,000 primary agricultural credit societies (PACS) have been severely hit
  2. Why: The RBI slapping restrictions following the demonetisation of Rs 500 and Rs 1,000 notes
  3. Urban cooperative banks (UCBs) too have complained to the RBI that commercial banks are refusing to provide them currency support, affecting their operations
  4. DCCBs and PACS are considered the lifeline of the rural economy
  5. Especially for farmers in states like Maharashtra, Kerala, Uttar Pradesh, Gujarat, Tamil Nadu and Karnataka
  6. Reason: The curbs on them could be related to lax KYC (know your customer) norms and money laundering in some cooperative banks

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