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Kerala government asked the Reserve Bank of India (RBI) to supply Rs 1,500 crore cash to the cooperative sector as first tranche to ensure their smooth functioning in the aftermath of demonetisation of high valued currency notes.
Responding to the request made by State Minister for Cooperation and Tourism Kadakampally Surenderan, the RBI assured to provide an amount of Rs 200 crore immediately.
The request was made to RBI Regional Director (Kerala) S.M Narasimha Swamy during a meeting held at the Minister’s office.
The RBI Director assured the state that an amount of Rs 200 crore would be released as first instalment and more currency would be supplied as and when the availability of notes increased.
The apex bank was fully aware of the role played by the cooperatives of Kerala banking sector in rural areas, a release said.
The state government wanted the RBI to take steps to provide more funds to carry out the transactions of customers of primary agriculture cooperative societies and relax the limit fixed for withdrawal of cash by primary societies.
It also wanted relaxation in the nine per cent capital adequacy ratio required to be maintained by cooperative banks in the wake of crisis faced by the sector due to demonetisation.