Credit disbursal at Cooperative banks drop by 80 pc
Kozhikode: The note ban has hit the credit disbursal from the primary cooperative banks in the district massively bringing it down to 20%. The primary banks which can now withdraw only Rs 24,000 through SB Accounts and Rs.50,000 through current accounts are extremely cash crunched to provide basic small scale credit starting from Rs 5000 at the primary cooperatives.
Despite requests made to the Regional Director, RBI, the withdrawal limit of the primary cooperatives have not been enhanced. The repayment of existing loans and the daily collection has inched back to 70% in the last two weeks from the severe drop they experienced following the demonetisation. This is expected to be restored to normal by March. The crisis has also affected the payment of credit sanctioned before November 8.
The cooperative banks provided small loans that were very helpful to the poorer sections. Rs. 5000- 1 lakh could be availed on personal guarantee of three people. Gold loans of up to Rs. 2 lakhs and loans of Rs. 50,000 specially for women on mutual guarantee were also provided. The average withdrawals in the district that had risen to alarming levels of Rs. 12 crores per day has dropped to Rs. 1.7 crores in January showing some recovery from the crisis that had threatened to cripple the cooperative sector. Also there has been fresh investments coming in raising hopes.