Co-op banks should be included in digital transactions: Devendra Fadnavis 

As a result, any attempt to neglect the cooperative banking sector from digital banking would be detrimental for the rural economy, he said. All the regional cooperative banks, district cooperative and credit banks, which have a vast network and operations in rural areas, should be covered under digital transaction, he said. Fadnavis said, “Almost 80 per cent of the financial operations in rural areas are through cooperative banks.

Farmers totally depend on the cooperative network. Farmers and villagers have trust in their working. Therefore, cooperative banks will have to be incorporated in all the digital reforms undertaken for cashless transactions.”

Modi had constituted a chief ministers’ committee to prepare a report on enforcement of cashless transactions post demonetisation. The team includes Fadnavis, Andhra Pradesh Chief Minister Chandrababu Naidu, Madhya Pradesh Chief Minister Shivraj Singh Chouhan and Sikkim Chief Minister Pawan Kumar Chamling. The committee presented its interim report to Modi. Officials from Niti Aayog and the central government were present at the meeting.

Fadnavis’ concern arises in the wake of the RBI decision in November disallowing cooperative banks from depositing the old demonetised Rs 500 and Rs 1,000 notes. The state had then taken up the issue with the Centre. The state has 35 DCCBs, with 5,000 branches. The deposits of farmers and villagers in these banks are estimated to be more than Rs 3 lakh crore.