“A situation has come up wherein the crop loan target for the year (2016-17) cannot be completely met on account of the RBI notification (on demonitisation). Further, Tamil Nadu’s food production will also be severely affected,” it said.
A majority of villagers had savings accounts in such credit societies but could not deposit the now defunct Rs 500 and Rs 1000 notes, it said.
The FD receipts of these credit socities stood at a little over Rs 54,000 crore but the demonetisation has resulted in them unable to receive new deposits, “affecting their commercial growth,” besides causing hardships to rural poor.
Many services like provision of seeds and receiving premium on crop loans in over 4300 primary cooperative credit socities were affected even as cash transactions in both these societies as well as Central Cooperative banks (CCBs) were not happening following an RBI notification in this regard, it said.
“Because of this, 23 district CCBs and 813 of their branches and lakhs of their customers have been affected.
Sourced from agencies, feature image courtesy: business-standard.com
