Page 19 - Banking Finance December 2016

CO-OPERATIVE BANK NEWS

CO-OPERATIVE BANK

NEWS
NEWS
NEWS
NEWS
NEWS

Kerala passes resolution IT raids Co-op bank for dicey transactions

against Centre targeting The Income Tax (IT) officials raided the nominations, continued till evening.
main branch of Balasore Bhadrak Cen-
co-op banks tral Cooperative Bank (BBCCB) at ''We cooperated with the IT officials and
The Kerala assembly in a special ses- Balasore suspecting shady transactions provided details they sought. We have
received more deposits
sion passed a post demonetisation. through our cooperative
resolution The team inspected de- societies than from indi-
against the posit slips, online transac- vidual account holders.
Centre for tions and documents sub- We have kept PAN details
"sidelining mitted against high value against the high-value de-
cooperative deposits. The raid, which came more posits,'' he said. Sources said before the
banks" with than 10 days after the Reserve Bank of RBI restrictions, the BBCCB had col-
only BJP legislator O. Rajagopal op- India (RBI) debarred the cooperative lected deposits of around Rs 59 crore
posing the move. banks from dealing with banned cur- in five days between November 10

Before moving the resolution, Chief rency notes of Rs 500 and Rs 1000 de- and 14.
Minister Pinarayi Vijayan assured the
house that the state would not lose Co-op bank challenged before Gujarat HC for
a single rupee put in the cooperative demonetisation
banks and his government would
Choked by the ban imposed by the Re- rency notes of Rs500 and Rs1,000 as
stand guarantee for it.
serve Bank of India (RBI) on district against the provisions of law. Accord-
The cooperative banking sector in central co-operative ing to the bank, the gov-
Kerala is a three-tier system, with banks (DCCBs), ernment is not vested
about 1,600 primary cooperative Bhavnagar District Co- with the power to de-
banks attached to 14 district banks, operative Bank Ltd has monetize currency notes
which are further linked to the apex
challenged the Centre's in the manner it has
Kerala State Cooperative Bank decision of demonetiza- done.
(KSCB).
tion before Gujarat high The petitioner has ques-
The total deposits in these coopera- court and urged the court to declare tioned the Centre's decision to exclude
tive banks, according to Kerala Co- the move as unconstitutional.
DCCBs from the process of disbursing
operation Minister A.C. Moideen is The bank has dubbed Prime Minister new currencies and banning them from
around Rs 1.27 lakh crore.
Narendra Modi's decision to scrap cur- accepting old currency notes.

BANKING FINANCE | DECEMBER | 2016 | 19

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