Demonetisation of Rs 1,000 and Rs 500 Notes - Kerala CM, Cabinet Ministers Protest Demonetisation Effect On Cooperative Banks Friday Nov 18,2016

Kerala Chief Minister Pinarayi Vijayan and his cabinet colleagues will sit on a day-long ‘satyagraha’ in front of the Reserve Bank of India (RBI) regional office here on Friday Nov 18,2016 protesting the effect of demonetization of Rs 500 and 1000 currency notes on cooperative banks.

They said that the move by the RBI to not allow these banks to accept deposits or change the existing notes is destroying the co-operative sector.

Cooperative banks in the state operate mainly in rural areas and play a crucial role in strengthening the economy of the state, empowering many people.

The state unit of the BJP has alleged that these banks are ‘an abode’ of black money and allowing deposits there cause the fight against black money to fail. While asking these banks to not accept deposits, the RBI also raised the concern of black money getting laundered.

Both the ruling Left Democratic Front (LDF) and the opposition, United Democratic Front (UDF), has reacted strongly to this allegation. Vijayan said that Kerala's cooperative banks are not abode of black money and there is a political conspiracy behind this move. He said that the public sentiment is against any efforts of crushing the cooperative bank sector and that needs to be expressed. The Opposition has also expressed their support to the government for in any action taken to tide over the crisis.